European shares steadied on Monday as Germany's election produced no nasty surprise, while Wall Street futures firmed on hopes results from AI diva Nvidia this week would justify the tech sector's sky-high valuations.

German's new conservative leader Friedrich Merz still has to form a coalition government and it is not yet clear whether that will include one or two partners, with the latter likely to take more time and horse trading.

Wall Street struggled for traction on Monday, ending mixed after slumping last week, while German election results buoyed German shares and Europe's single currency as investors waited for midweek results from artificial intelligence chip leader Nvidia.

Germany’s stock index futures and the euro both rallied in Asian trading after the country’s opposition leader Friedrich Merz won Sunday’s federal election, matching opinion polls and paving the way for a pivot to increased spending.

US stocks looked set to claw back ground Monday with Nvidia Corp. rising in early trading, days before its earnings release. German stocks gained after conservatives led by Friedrich Merz emerged as the winners in a weekend vote.

The centre-right CDU has emerged as the biggest party in the German election, making Merz the most likely to lead a government, following coalition negotiations.

The likely next chancellor is unpopular, and his country’s economy has stalled. But his penchant for risks could help lead to a European showdown with President Trump.

European shares and the euro climbed on Monday as Germany's election produced no nasty surprises, while Wall Street futures firmed on hopes results from AI diva Nvidia this week would justify the tech sector's sky-high valuations.

Wall Street struggled for traction on Monday, ending mixed after slumping last week, while German election results buoyed German shares and Europe's single currency as investors waited for midweek results from artificial intelligence chip leader Nvidia.

The leader of the conservative Christian Democrats celebrated as exit polls indicated they had won Sunday’s election, which had the highest voter turnout in decades.

Plains All American Pipeline, BJ's Wholesale, Pilgrim's Pride and Nvidia have been highlighted in this Investment Ideas article.

Nvidia (NVDA) suffered a record one-day loss in market value last month over how low-cost DeepSeek might shake up the "AI" ecosystem, although shares have since mostly bounced back.