German stocks see downturn as Merz misses parliamentary majority

Published 06/05/2025, 10:22
© Reuters.

Investing.com -- German stocks observed a decline on Tuesday, as the DAX index fell by 1.8% following nine consecutive positive sessions.

The domestically focused mid-cap MDAX also experienced a 2.4% drop. This fall in shares came after Friedrich Merz, the conservative leader, failed to secure the required parliamentary majority in the first round of voting for the chancellorship.

In addition to the stock market decline, bond yields also dipped following the voting results.

The combination of these financial shifts reflects the market’s response to the political uncertainty surrounding the chancellorship.

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