Benchmark DAX index dipped by over 2% as the incoming chancellor failed to secure enough votes of confirmation.

On Tuesday, Friedrich Merz, the Christian Democratic Union’s candidate for German chancellor, failed to secure the required majority in Bundestag vote, falling six votes short of the 316 needed to be elected chancellor.

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Merz received 310 votes in the secret ballot. A total of 621 out of 630 members of the Bundestag, the lower house of parliament, cast their votes, one of which was invalid.

Bundestag President Julia Kloeckner interrupted the plenary session after the voting results were announced. The discussions of parliamentary groups are still ongoing. However, multiple German media suggested that there won’t be another round of voting Tuesday.

Germany’s benchmark DAX index on Tuesday dipped by more than two percent during the intraday trading as the incoming chancellor failed to secure enough votes of confirmation in the parliament.

The unprecedented failure sent the DAX index nosediving to an intraday low of 22,861.4 points, which recovered later but was trading more than 1.3 percent lower than the closing level on Monday.

The decline, which is sparked by the vote loss, reversed days of gains of the DAX index as the U.S. administration softened its rhetoric with regard to tariffs recently.

Friedrich Merz, the leader of the CDU and CSU parties which won the elections, is due to be confirmed by the parliament as the next chancellor of Germany but failed to garner enough votes.

“It was supposed to be the start of a new beginning, but it turned out to be a day of big frustration,” wrote Carsten Brzeski, Global Head of Marcro at ING bank in a note. Calling the failed vote as a “disaster,” Brzeski said, “the new government is off to a very difficult start.”

teleSUR/ JF

Source: Xinhua

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