German stock markets rattled by vote loss of incoming Chancellor

FRANKFURT, May 6 (Xinhua) -- 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." Enditem