Germany faces its second change of leader in fewer than four years after the head of the center-right opposition, Friedrich Merz, won Sunday's election, which saw a surge for a far-right party and a stinging defeat for outgoing Chancellor Olaf Scholz.

German stocks rallied on Monday and the euro reached a one-month high after Germany’s election result put centrist parties on track to form a coalition.

Merz expressed concern over changing relations with Washington under the Trump administration, emphasizing the need for gradual independence from the U.S.