Broader European politics will remain on market's radar - Scotiabank

Analysts at Scotiabank explained that the CSU, the sister-party to German Chancellor Merkel’s CDU, lost its overall majority in the Bavarian state legislature in voting at the weekend.

Key Quotes:

"Its 36% return was the lowest share of support since the 1950s and the weak performance may reverberate around domestic politics for some time to come. In a warning for national politics, voters shunned mainstream parties, with the Greens (18%) and far-right (11%) picking up support. "

"The election has had little impact on the EUR today but suggests that the unsettled backdrop for German (and broader European) politics will remain on the market’s radar."