Germany Election A tremor of optimism to dull markets was provided at the beginning of the week, although the issue of whether the new government can provide highly promised public spending and Restart the economy Hanging continues the main industries besieged in the country.

Frankfurt Laxative The index gained 0.6 % on Monday, walked in the United Kingdom an apartment FTSE 100 And 0.78 % is a loss for France CAC 40While the euro rose up against the US dollar, the costs of British borrowing and German borrowing costs were slightly changing.

On Sunday, a vote won a victory for the conservative alliance of the Christian Democratic Union (CDU) and the Christian Social Union (CSU). That was created CDU-CSU Frederich Mirz candidate -A right-wing politician in the middle, a supporter of business, works in German panel boards and Deutsche Börse-that he is almost certain to take over the following advisor.

However, some uncertainty remains, with a period of coalition talks in the future and a future that needs to be supported by the smaller parties to enhance promised policies, including German reform. The controversial rule “debt brakes”.

“I think what the market now sees is some stability, at least we know who won the elections, and we know who claims this, then we know who the alliance will adopt from here. So I think the market is taking this as a great positive, he said,” Michael Field,, The chief stock strategy in Mooringstar, for CNBC “Squawk Box Europe” on Monday.

Field said that the result of the market was worse that CDU would have witnessed less than the necessary level to start forming an alliance, which led to “a few months of parties to scramble and not clarity in business.”

Analysts at Dansky Bank said at a noticeable A.

Whether it is an alliance of two or three parties that bring a smaller player like vegetables-with Mirz excluding the referee alongside the extremist AFD party in second place-the main parties are agreed to policies that include energy relief. “.

According to the field, this can offer a boost to the sectors including the German auto industry, Serie once That was beaten by competing with electric vehicles from China, weak home demand, and American tariff threats.

“The sector is being beaten very poorly … Our position is that it does not take much momentum and a little shift in the positive direction, and a new government in its place with a mandate to really reduce energy prices. Field said that trying to improve the competitiveness in the economy, any little bid There it may give this sector that it needs poorly at this stage. “

The facilities sector, which is largely overlooked, is another field that may benefit from if the government removes policies such as energy price covers and consumer energy taxes that have limited market returns.

Siemens Energy President Joe Kaiser told CNBC on Monday that the government needs a long -term agenda to restructure Germany over the next five years. Such agenda will need to focus on the economy, infrastructure, energy, education, innovation, restructuring the pension system and “restore government control and government reforms.”

At the same time, Arnd Franz, CEO of Maahle Mahmoud, told the manufacturing sector that the manufacturing sector needs urgent measures on taxes, energy costs and labor market flexibility.

CITI analysts confirmed on Monday that “the scene of politics after the elections will depend on the form of the coalition government that has not been formed yet.”

They said that highlighting the impact of the market that the smaller parties could make, that the sharing of the vegetables in the coalition will be positive for construction companies that make heating and cooling equipment, because this would reduce the possibility of canceling subsidies and mandate.

Citi analysts also said they saw “limited [medium-term] A risk to the German wild wind auction system, “quoting the CDU platform that it has come time” for network development, storage facilities and all renewable energy sources.

“It seems that this does not mean any major steps aimed at impeding the development of wind energy,” according to City, which supports stocks like Nordex and FestasThey wrote.

However, the remaining main questions of the markets include whether the government will be able to do so Returning the economy to growthRebuilding weak work morale and consumers, and increasing financial spending by removing the rules stipulated in the constitution that limits the amount of debts that the government can take. The last point has moved to a broader concentration in recent weeks such as European countries Discuss the increase in their defensive spending In response to the war of Russia, Ukraine and Tensions with the United States

“The main result of the market perspective … is the fact that the three parties of the institution (CDU/CSU, SPD and Greens) do not demand two -thirds of the seats needed to change the constitution,” Rabobank Economics Research, “said the two teams.

Therefore, I do not have a reform that does not have a clear path, as AFD opposes the removal of the brakes from the debt, the Linke dies open to it but at the dispute with the SPD, and it opposes the armament of Ukraine.

“The bottom line, then, is that the electoral result of yesterday did not lead to a constitution to allow a step in government spending.”

They added that the German and regional growth expectations remain “definitely dark in the absence of a dramatic financial transformation.”