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Market Reactions to Political Shifts: DAX Holds Steady Amid Coalition Fallout

The German stock market remains relatively stable in the wake of the ruling coalition’s collapse, with the DAX index forecasted to open 0.3% higher. Investors appear cautiously optimistic despite concerns over government instability, which might hinder economic reforms. Meanwhile, Donald Trump’s election victory has generated mixed reactions globally, with U.S. markets soaring on hopes of beneficial economic policies. Analysts stress that upcoming decisions from the U.S. Federal Reserve will be significant, as potential tax cuts and tariffs under Trump’s administration may reshape future monetary policy and trade dynamics.

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