Europe open: German shares rise on election result

German shares rose sharply on Monday as the chances of a left-wing coalition gaining power lessened after the country’s national election.
The DAX index was up 1% to lead gains among regional bourses, while the pan-European Stoxx 600 index increased 0.63% in early trade.

The centre-left Social Democrats are trying to form a government after narrowly winning their first national election since 2005. The party is seeking an alliance with the Greens and the liberal Free Democrats in what has been called the “traffic light” coalition.

In equity news, shares in serviced offices company IWG topped the Stoxx with a 5.79% rise on reports it is exploring a multibillion pound break-up that would involve splitting it into several distinct companies.

Rolls-Royce shares gained by 4.7% after the aerospace engineer won a 30 year £1.9bn contract to supply parts for B-52 US Air Force bombers.

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