Change Can Be Good: What Markets Expect From the German Election

  • Bund yields could rise, peripheral spreads tighten after vote
  • Investment push to offer support for renewables stocks, euro

Photographer: Kay Nietfeld/picture alliance/Getty Images

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There was a time when markets would fret at the prospect of Angela Merkel -- a beacon of stability in a turbulent world -- abandoning the helm of Europe’s biggest economy. That time is gone.

As German voters head to the polls, investors are ready to embrace change, and a potential turn to the left, as long as it’s moderate.