The euro is up, European stocks and especially German defense names are up, and the recent rally in 10-year U.S. Treasuries has not been followed by German Bunds. Click to read.

For all the noise surrounding President Donald Trump’s tariffs, perhaps the most significant development for global financial markets on an exceptionally busy day was Germany’s decision to break its fiscal shackles to transform Europe’s defenses.

Goldman Sachs raised its economic growth forecast for Germany this year, citing the prospect of increased military and infrastructure spending, and also upgraded the growth estimate for the broader Euro area.

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.

Business activity in the euro area hardly grew again in February, reinforcing fears that the bloc remains mired in stagnation.

The euro edged higher on Monday as Germanys conservative CDU/CSU bloc secured 28.5% of the vote in the national election, followed by the far-right AfD at 20.5%, according to ZDF projections. Investors are now focused

Frankfurt equities and the euro rose Monday after conservatives led by Friedrich Merz won Germany's national election, with investors hoping that Europe's largest economy can emerge from recession.

Germany's planned 500 billion euro ($539.90 billion)infrastructure fund will boost sentiment in the construction industry in the country, Geberit Chief Executive Christian Buhl said on Thursday.

The parties hoping to form Germany's next government have agreed to create a 500 billion euro infrastructure fund and overhaul borrowing rules, a tectonic spending shift that jolted markets on Wednesday on hopes of reviving Europe's largest economy.

The euro and European stock futures rallied, while German Bund futures fell after the parties hoping to form Germany's next government agreed to create a 500 billion euro ($529.80 billion) infrastructure fund and overhaul borrowing rules.