Investing.com - In the upcoming German election, Chancellor Angela Merkel is all but certain to win a fourth and final term as the leader of the German people.
Her party, the Christian Democrats, leads in the polls by a wide margin over Martin Schulz's Social Democratic party of Germany.
If Merkel indeed retains her position, the far right would be largely left out of the two major powerhouses in Europe, Germany and France, after not long ago it seemed like the tide of anti-immigrants parties would wash France and Germany as well.
For the financial markets, and especially the DAX, a victory by Merkel would be welcomed with a sigh of relief. The German economy has been doing well under Merkel, with GDP growth and more taxes collected than spent by the German government.
(Dax Graph) - After losing a thousand points over the summer, the DAX has recently rallied back, signaling the belief in a Merkel victory. When Emmanuel Macron won the French Presidency in April,(CAC Graph) - the CAC 40 gained 8% in under a week. It seems likely that a Merkel victory would help push the DAX further up in its quest for 13 thousand points.