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Failed Merkel Talks a Hiccup, Not Dealbreaker for Stocks

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What's Ahead for Merkel as Coalition Talks Collapse

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Germany’s collapsed coalition talks aren’t expected to be a dealbreaker for European equities.

While Chancellor Angela Merkel’s failed bid to form a new government damped sentiment toward the region’s stocks in early trading, the strength of the German economy will help stock prices withstand the uncertainty, according to traders and analysts. In the meantime, the political impasse may prompt some investors to lock in equity gains before the holidays.