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The purse strings have been loosened and will stay that way, no matter who heads Germany’s new government. That’s the verdict from investors who see potential gains for segments such as green finance alongside modestly higher bond yields.

After Finance Minister Olaf Scholz’s centre-left Social Democrats (SPD) narrowly defeated the ruling Christian Democratic bloc (CDU/CSU) in Sunday’s election, both parties will woo the Greens and the pro-business Free Democratic Party (FDP) to form a coalition.

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