According to asset manager DWS, Germany’s looming change in government brings potential market optimism. While it’s early to make predictions, DWS notes that a ‘grand’ coalition between the CDU/CSU and SPD, likely led by the CDU, appears probable. This coalition could advance policies for increased government spending, support for Ukraine, and pension reform—an agenda that may boost investment and provide essential stability.

Another possibility would be a black-green coalition under Robert Habeck, but the asset manager says this is less likely.

All in all, DWS is optimistic that the shift in government will contribute to stable and attractive conditions for investors over time.

Read the full insight here.