(ARTICLE WAS WRITTEN BY LINCOLN MICALLEF)

European stock markets closed the trading session on Monday flat to lower as investors still digest the outcome of yesterday's German elections, during which Chancellor Angela Merkel won a fourth term after her Christian Democratic Union won 33% of the votes. The Election was won with a smaller share of vote than expected. Meanwhile the country’s main far-right party, alternative for Germany, posted a surprisingly strong result.

In London, the FTSE 100 Index declined 0.13 percent, the largest fall in more than a week pushed down by Mediclinic International. On the other hand, The Germany’s DAX Index gained 0.02 percent to finish above the flat line.

In the U.S. the S&P 500 Index was also in the red at the close, as investors considered the impact of the Republican tax proposal that would dramatically cut levies on corporations and the wealthy. Meanwhile, North Korea rattled the markets again, claiming the right to shoot down US bombers after US President Donald Trump ''declared war'' upon them.

On the Currency side, the sterling climbed against the euro, however this gave European stocks a boost even after Asian peers declined.

Volkswagen

The world’s largest automaker is advancing to secure long-term supplies of cobalt, a vital component of rechargeable batteries, as the group speeds its ambitious shift to electric cars. Volkswagen, which decided to adopt this strategic shift to electric vehicles after it was immersed in the emission scandal, plans to invest over €20 billion in zero- emission vehicles by 2030 in order to challenge pioneer Tesla in creating a mass market. Along with the costs to develop the new models, automakers will have to contend with weaker margins for their electric vehicles than what they’re used to getting for diesel models. Although the company is under particular pressure to present a fresh approach to the challenges facing the industry, it is aiming to roll out 80 new electric car models across the group, which also includes the Audi, Seat, Skoda and Porsche brands by 2025. Demand for cobalt is expected to soar in the coming years due to the electric vehicle revolution as governments around the world crack down on pollution.

Unilever

Unilever PLC turned higher by 0.2 percent as it reached an agreement to buy skincare business Carver Korea for €2.27 billion, seeking to strengthen its position in northern Asia. Skincare sales in South Korea are expected to reach $6.3 billion this year. According to Bloomberg, it’s the biggest acquisition yet for the Anglo-Dutch company in the world’s fourth-largest skincare market. The company stated that it is expected it to spend between 1 billion euros and 3 billion euros on takeovers every 12 months in order to accelerate its push past mainstream products and into healthier or ethically sourced brands. Many of Unilever’s recent acquisitions have focused on its food arm, nonetheless the company has also made additions to its personal-care with deals like the purchase of brands such as Savital shampoo from Latin America consumer goods giant Quala, in May, and Dollar Shave Club last year.