German Chancellor Angela Merkel was returned to power over the weekend, winning her third consecutive federal election. Her position on the European sovereign debt crisis, record of economic growth and the nation's lowest unemployment rate in two decades found favour with German electors. Her Christian Democratic Union Party came within a hair of an absolute majority, and will have to form a coalition to lead Europe's largest economy.
For the past few months, markets have been driven by the U.S. Federal Reserve's bond buyback program. Now that the topic is no longer front and centre, at least until the next Fed meeting, investors will shift their focus to the U.S. debt ceiling. Stock markets will certainly bear the brunt of the uncertainty that will reign over the coming weeks. Wishing you a great day! Rana Karim.
Range of the day: 1.0250-1.0345