Stocks and commodities have been steady to start the new trading week. Traders have focused their attention on currency markets in the wake of election results and other political developments from around the world. 

The Euro is selling off in the wake of German election results.  Chancellor Merkel's CDU-CSU alliance came out on top but their support plunged to 32%, its worst showing in over 50 years, from 40% in the last election.  The socialists dropped to 20% support and announced they will leave the grand coalition leaving Merkel to scramble for new partners. The right wing Alternative for Germany party exceeded expectations with its support jumping from 4% to 12%, a clear rejection of Merkel's wide open immigration policies.  

Other factors weighing on the Euro include ongoing political turmoil on Spain over the Catalan independence referendum which had the IBEX down over 1% this morning. Also, Italy's Euroskeptic Five Star Movement elected a new PM candidate over the weekend.

On the other hand, Sterling is climbing this morning heading toward the next t round of Brexit talks. The street continues to respond favourably to UK PM May's speech last Friday which opened the door to progress on negotiations without giving away the store.  

The New Zealand Dollar was hammered to start to week. The conservative National Party won their weekend election but failed to capture a majority. The Japanese Yen was steady after PM Abe called a snap election as has been recently rumoured.  

Apple could come under pressure today as concerns about its new products shift from the struggling iPhone 8 to the flashier iPhone X. Apparently, Apple has asked its suppliers to withhold shipments and only send about 40% of what was initially expected. Reports also suggest some component suppliers are struggling to meet even the lower rate. Continued struggles at Apple and other tech leaders could impact NDAQ trading. 

As the week progresses focus may shift from elections to central banks and trade talks. A ton of Fed speakers are on tap for this week headlined by Chair Yellen.  Also Bank of Canada’s Poloz, Bank of England’s Carney and ECB’s Draghi are all also out talking this week.

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