The German elections that were held on Sunday, February 23, saw the Conservatives, or the larger Right of the country's political spectrum, win big.

German Elections

Here, the centre-right CDU/CSU was the larger political force with a total of 28.52 per cent of the vote, or 208 seats in the German Parliament, or Bundestag.

This was followed by the biggest winner in the elections, AFD, who doubled their vote share to 20.8 per cent, taking them to 152 seats.

The ruling parties, which were previously in the government for four years, namely, SPD, Greens, and FDP, all lost their vote shares, with FDP failing to make it back to the parliament.

The German equity markets appears to have responded positively to this development.

DAX PERFORMANCE-INDEX

The German markets based out of the Frankfurt Stock Exchange closed with gains on Monday.

The DAX index, which is the most crucial, and one of the most important indices in the whole of Europe closed in green with gains.

The index with 40 major blue-chip companies closed at 22,425.93 points, after gaining 0.62 per cent or 138.37 points.

MDAX

Another major index, MDAX also closed in green. This index made larger gains than DAX, even hitting the high of 28,279.98 points, close to its 52-week high of 28,505.53 points.

The index closed with monumental gains of 1.52 per cent or 417.04 points. This took the overall value of the MDAX index to 27,918.55.

SDAX

Now, when we look at the SDAX, the index consisting of small-cap companies.

Here again, the index closed in green with gains of 0.87 per cent or 129.77 points, taking the overall value of the index to 15,018.36.

These snap election were called, after the three-party ruling coalition lost the vote of no-confidence. These elections also come at a time, when the world's third-largest economy, which was once regarded as the engine of Europe, has been going through a period of seismic decline in its growth.