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German chancellor Angela Merkel is set to hold a press conference on Sunday and the market is speculating that it would be on whether she is running for the fourth time or nor not to become the chancellor of Germany. Ms. Merkel’s Christian Democratic Union (CDU) didn’t provide any details for the press conference. She will be holding a meeting with the executives of her ruling CDU party.
Ms. Merkel hasn’t provided any hint so far over her bid to chancellorship for the fourth time but this year is undoubtedly the toughest for her to get reelected as the German people are disgruntled by her handling of the refugee crisis. Germany has so far taken the highest number of refugees; more than millions from Syria, other parts of Middle East, North Africa, and Asia, who are predominantly Muslim. This has angered many people in Germany, which is Christian dominated. The people of Germany are also frustrated by the recent terror attacks in the European soil and the government’s response to them.
The challenge this year is more daunting as the rightwing party, Alternate for Germany (AfD) made significant gains in regional parliaments. If she announces that she would be running again the reaction in the market on Monday would be relatively mute compared to if she doesn’t. The euro and the German benchmark stock index DAX could face serious sell-offs in such a case.
