Global Stock Markets Show Mixed Performance as German Election Results Fuel Market Activity
Global stock markets exhibited mixed performance on Monday, following contrasting trends in the US and European markets, the Associated Press reports.
US stocks experienced a sharp decline amid concerns about the potential impact of US economic conditions, while German stocks advanced following the results of the country’s national election.
In the US, the stock market suffered a notable drop, with the S&P 500 sinking by 1.7%, marking its worst performance in two months. The Dow Jones Industrial Average lost 1.7%, while the Nasdaq Composite fell by 2.2%. This decline was driven by reports indicating a slowdown in US business activity, with S&P Global suggesting that US economic growth had slowed to a 17-month low. In particular, many services businesses reported shrinking activity, contributing to broader concerns about the future of the US economy.
Several factors have contributed to this negative sentiment, including a rise in tariffs and ongoing geopolitical uncertainties under President Donald Trump’s administration. A report from S&P Global Market Intelligence highlighted that businesses were facing challenges such as spending cuts, tariff-related price increases, and uncertainty surrounding government policies. Furthermore, US consumers are bracing for higher inflation, partly driven by the prospect of increased tariffs on imports.
In contrast to the US, German stocks saw positive movement, fueled by the results of the German election. Shares of Just Eat Takeaway surged by 0.7% to 22,439.17 following the victory of conservative leader Friedrich Merz and his party in the election. The win, which reflected significant concerns about the future direction of Europe’s largest economy, provided a boost to investor sentiment in Germany.
While the far-right party surged to become Germany’s second-largest, the outcome was viewed positively in the markets, with investors responding to the prospect of stability under the conservative leadership.
European markets showed a mixed performance, with the CAC 40 in Paris slipping 0.2% to 8,138.47, while the FTSE 100 in the UK edged up 0.1% to 8,669.45. Markets were closed in Tokyo for a holiday, and other Asian markets displayed a range of movements. Hong Kong’s Hang Seng index fluctuated before closing up 0.6%, while Shanghai’s Composite index fell by 0.2%. In South Korea, the Kospi lost 0.4%, while Taiwan’s Taiex dropped by 0.7%. The Sensex in India also declined by 0.7%.
In commodity markets, US benchmark crude oil dipped 9 cents to $70.31 per barrel, while Brent crude fell 4 cents to $74.01. The US dollar rose slightly against the Japanese yen, climbing to 149.50 from 149.24 yen. The euro also saw modest gains, rising to $1.0481 from $1.0462.
