ETF Snapshot: European large-caps haemorrhage €7bn as SPD members revolt on proposed German coalition

Data from TrackInsight

European large caps recorded heavy outflows in the week ending 5 January, according to data from TrackInsight, as hopes Chancellor Angela Merkel will secure a coalition agreement with the German Social Democratic Party (SPD) hang in the balance.

SPD leader Martin Schulz and Merkel agreed a blueprint last week, which, if accepted by the SPD on Sunday, will allow formal negotiations to begin. However, it is being met by fierce opposition. SPD's youth leader Kevin Kühnert has said the blueprint will drive the party into extinction, according to The Times.  Merkel was forced to look to the SPD party after her attempts to form a coalition with the FDP and the Green party fell apart in November. The Chancellor, who has been in power for 12 years, has been looking for a way to form a government since the German elections in Septe...