Market Turmoil Follows Merz's Failed Chancellorship Bid

In a dramatic turn of events, Germany's DAX index experienced a significant drop, losing over 200 points this Tuesday. This market reaction came after Friedrich Merz, the Christian Democratic Union leader, failed to secure the necessary parliamentary votes to become the next chancellor of Germany. The Bundestag now has a 14-day window to elect either Merz or another candidate to the chancellorship.

European Markets React

At precisely 10:17 am CET, the financial markets showed varied responses. The CAC 40 saw a decrease of 0.50%, while the FTSE 100 remained stable, showing no change. Meanwhile, the Euro Stoxx 50 wasn't spared, recording a 0.51% drop. Notably, Germany's DAX was hit the hardest, falling by 202 points, which translates to a 0.85% decline.

Euro Gains Slightly Amidst Political Uncertainty

Just two minutes after the market's initial reaction, the euro experienced a slight uptick in the currency markets. Trading at 0.26% higher, it was selling at 1.13423, indicating a nuanced response to the day's political developments.