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How could polling day unfold?

The federal president set 24 September 2017 as the date for the German federal elections (‘Bundestag’).

The election takes place as a poll with official ballot papers. Electoral devices are no longer used in Germany having been declared unconstitutional by the Federal Constitutional Court on 3 March 2009. Votes can be given in the municipalities from 8am to 6pm.

Voters have two votes. With the first vote, they elect a concrete candidate from the constituency. The second vote determines the majority percentage in Parliament. With the second vote, you don’t vote for a specific candidate but rather the party list on which the order of the candidates has already been predefined.

The first projections should be announced by late afternoon. In these estimates, initial speculation on possible party coalitions is likely to be made. After the final result in the evening is reached, the first party talks on possible coalitions are given, before initial coalition negotiations take place in the ensuing days.

As darkness falls in Germany, trading in foreign exchange begins in the Far East. Our clients can trade and monitor the fluctuations of the popular EUR/USD pair, and other currency pairs from 9pm (UK time), and thus anticipate the reaction of the financial markets for the trading day ahead. US stock index futures are tradable from 11pm (UK time) on Sunday, along with the Germany 30.

 

Heightened market volatility is likely over the election period, which could result in widened spreads. We recommend that you monitor positions carefully, consider the use of appropriate risk management tools and maintain a sufficient account surplus throughout this period.

CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.


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