Global stocks tumbled on Tuesday amid growing concerns over tariffs and political uncertainty in Germany. Friedrich Merz, the conservative leader, unexpectedly failed to secure parliamentary votes to become chancellor, adding to the turmoil.
The failure came as a surprise in the Bundestag, dealing a blow to Merz’s proposed government aimed at boosting economic growth. This unexpected setback occurred at a critical moment for the global economy, with investors closely monitoring potential shifts in U.S.-China trade relations.
As European markets reacted, Germany’s DAX dropped by up to 2%, with Britain’s FTSE 100 declining slightly. Attention remains on U.S.-China trade negotiations, as both parties seek to ease tariffs and secure a fair trade agreement, while currency fluctuations and commodity prices add to the market’s volatility.
(With inputs from agencies.)
