Friedrich Merz’s failure to clinch a Bundestag majority sent shockwaves through German assets on Tuesday, raising questions about the country's political stability as economic clouds darken over Europe’s largest economy.
The DAX 40 index slumped 1.5% to 22,924 points by late morning in Frankfurt, threatening to snap a nine-day winning streak. Eurozone-wide losses followed, with the Euro Stoxx 50 index down 1.1% at 5,225.
