Germany faces its second change of leader in less than four years after the head of the center-right opposition won Sunday’s election.

Wall Street struggled for traction on Monday, ending mixed after slumping last week, while German election results buoyed German shares and Europe's single currency as investors waited for midweek results from artificial intelligence chip leader Nvidia.

The results of Germany’s February 23 election have cemented a chilling trend that has increasingly characterized European politics in the 21st century: the collapse of social democracy and the subsequent resurgence of far right parties and movements,

Germany's election winner Friedrich Merz wants to form a government quickly in order to revive a moribund economy, hike defence spending and tackle diplomatic challenges ranging from a confrontational Trump administration to ending the Ukraine war.

Friedrich Merz is poised to become Germany’s next chancellor, but his victory may not deliver the stability many voters had hoped for. The 2025 election marks a major turning point for Germany, with a sharp rightward shift and the collapse of the center-left.