An election win for Germany's conservatives has eased concerns of political gridlock in Europe's biggest economy, though it failed to lift uncertainty around whether a new government can deliver fiscal reforms that would boost sluggish growth.

Germany faces its second change of leader in less than four years after the head of the center-right opposition won Sunday’s election.

The German election may fuel optimism about potential fiscal policy reform, which is expected to revitalise Europe's largest economy. The euro and the DAX could strengthen further amid the projected result.