European markets react to German election results and ECB policy

European stock markets are facing mixed signals as investors react to political developments in Germany and upcoming monetary policy decisions. The Alternative for Germany (AfD) party achieved a historic electoral result in state elections, impacting German bonds and influencing market sentiment across the continent.

Attention is also focused on the European Central Bank (ECB), with expectations of an interest rate hike this Thursday. Investors are closely monitoring potential signals regarding further monetary tightening. Meanwhile, rising oil prices, driven by tensions between the United States and Iran in the Strait of Hormuz, are impacting energy sectors.

In Portugal, the Lisbon Stock Exchange opened higher, led by gains in the energy sector, including EDP Renewables and Galp. Conversely, CTT saw significant losses following reports that it failed to reach an agreement with Spain's Cajamar regarding the sale of Banco CTT.