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(Bloomberg) -- The euro rose and German mid-cap stocks rallied on speculation that Germany’s election results may pave the way for more spending to boost economic growth. S&P 500 futures pointed to a rebound after Friday’s selloff.

The euro was up 0.2% having pared some earlier gains, and Germany’s MDAX, a gauge of mid-sized companies, added 1.8%. Investors were optimistic that the Germany’s conservative leader Friedrich Merz would be able to form a coalition government and loosen an era of tight fiscal policy in Germany.

Broader gains in European stocks were limited, with the Stoxx 600 little changed. Prosus NV slumped 7.5%, one of the biggest drags on the index, after announcing plans to buy Just Eat Takeaway.com NV for €4.1 billion ($4.3 billion).

Germany’s conservative leader Merz emerged as the winner in Sunday’s election, but the results gave his Christian Democrat-led bloc just one clear path to power and they face intense pressure to move quickly to form a government. While the far-right Alternative for Germany, or AfD, doubled support to become the second-strongest party with 20.8%, it fell short of a blocking minority on its own.

“It’s a complicated election outcome. There is a clear mandate and it should allow for quick agreements with enough policies that should be helpful. But the far right and far left could stop constitutional reform,” Jari Stehn, chief European economist at Goldman Sachs Group Inc, said in a Bloomberg Television interview.

In Asia, a blistering rally in Chinese technology shares took a breather on Monday after an executive order from President Donald Trump restricting Chinese spending on some strategic US sectors.

In corporate news, Berkshire Hathaway Inc. is looking to increase ownership in Japan’s five largest trading houses “over time,” Warren Buffett said in an annual letter to shareholders.