 Risk sentiment took a mild turn to the downside in European markets today, with DAX pulling back from last week’s solid gains. Investors are watching developments in Germany’s political arena, where Greens have voiced opposition to proposals by CDU’s Friedrich Merz for a sweeping overhaul of debt rules, including a massive increase in state borrowing and a EUR 500B infrastructure fund. While this move appears to have dampened market confidence temporarily, the broader reaction remains measured, suggesting that investors are just waiting for more clarity on any subsequent political negotiations. Despite initially rejecting Merz’s plans, Greens have indicated they will present their own ideas and hold further talks with both conservative CDU/CSU and SPD. This could be a strategic negotiation tactic aimed at extracting additional concessions for climate protection measures or other political agenda. Meanwhile, Euro is largely unfazed, holding steady in tight range against Dollar. Supporting Euro’s relative resilience, strong investor confidence data in both the Eurozone and Germany stand in stark contrast to deteriorating sentiment in the US.... | 
