German stocks rose modestly after a solid election victory for the conservative Friedrich Merz left him with a clear path to form a governing coalition. The DAX index recently stood a

The euro and German stocks rallied on Monday as investors welcomed Germany’s election result that put centrist parties on track to form a coalition, although optimism was tempered by potentially tricky negotiations over economic policy.

Europe must seek to “achieve independence” from the United States, Germany’s likely next chancellor Friedrich Merz said after his opposition conservatives won elections on Sunday, in a vote that also saw surging support for the far-right.