European and then UK markets will open in coming hours, so a heads up to some political news from Germany over the weekend.
I reckon the headlines are worse than the impact, but there could be enough for some fear-induced EUR mark lower:
Here is the BBC headline: Merkel's Bavaria ally CSU suffer 'massive losses'
- Angela Merkel's sister party has suffered massive losses in Bavaria's state elections
- The CSU is set to lose its absolute majority in the state parliament
- The Greens surged into second place and the anti-immigration AfD entered the state parliament for the first time
- The CSU has ruled Bavaria almost single-handedly since 1957, but has lost support as opinion becomes polarised over issues like migration.
- Party leader Horst Seehofer said it was "not a nice day", but added it was only "one side of the coin" as the vote gives "a clear mandate" allowing the CSU to form a new government.
- Exit polls for major broadcasters said the CSU (Christian Social Union) won about 37% of the vote, down 10 points on four years ago, with the left-leaning pro-immigration Greens on 18%.
Link above for more. Yeah, not great news for political stability but could have been a lot worse.
