Europe stocks close lower, Germany’s DAX pares losses as Merz elected chancellor; FTSE 100 maintains record run

The U.K.’s FTSE 100 index ended 0.01% higher, nudging into positive territory late in the session to extend the record set Friday for its longest-ever streak of daily gains. London markets were closed on Monday.

Germany’s DAX index was down 0.4%, paring some losses after Friedrich Merz was elected as Germany’s chancellor in a second-round parliamentary vote. Merz failed to secure the necessary support in a shock vote earlier in the day.

Elsewhere, Asia-Pacific markets were mixed on Tuesday as investors assessed trade developments between the U.S. and countries in the region, with a focus on Asian currencies that have been strengthening on the back of a declining dollar.

On Wall Street, stocks were lower as investors awaited the start of the Federal Reserve’s first policy meeting since U.S. President Donald Trump announced “reciprocal” tariffs in early April.