European stocks, and particularly the German market, have been hit once again over recent days by the possibility of political turmoil in Germany caused by disagreements within the ruling coalition over the country’s migrant policy.
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Exchange traded funds tracking Spanish and Italian equities have suffered significant falls over the past week as a result of events that threaten the political stability in both countries, and in the case of Italy raise fresh concerns over the rise of populism in Europe as a whole.
Investors have not started panic selling German ETFs, despite the shock popularity of the nationalist Alternative for Germany (AfD) party, which gained 12.6% of the vote in the Federal Elections.