The OMXS index has fallen 1.2 percent following the news that Friedrich Merz did not receive a majority of the 630 votes in the German parliament, which could potentially complicate Merz's accession as Germany's next Chancellor.
The DAX index on the Frankfurt Stock Exchange is also falling sharply, down by over 1 percent after the vote.
Broad decline
The stock market decline in Stockholm is broad. Among the most traded stocks in the OMXS30 index, heavyweights such as AB Volvo and Atlas Copco are falling by 2.1 and 2.3 percent, respectively.
The construction company Skanska has received a new major order for a data center in western USA valued at approximately 1.7 billion. However, the stock is falling by 0.9 percent.
The property company Castellum is falling sharply, down by over 8 percent, following a report for the first quarter showing that revenues and management results are being pushed down.
The OMXS index was sideways on Monday and is down by 2.5 percent since the turn of the year – if you count Tuesday's fall.
It is also pointing downwards in futures market ahead of Tuesday's stock market opening on Wall Street.
Medicine tariffs
On the tariff front, the US President Donald Trump has flagged that within two weeks, new tariffs will be imposed on foreign medicines imported to the USA.
The market has otherwise had a lot of focus this week on the interest rate decisions that central banks will deliver, including the US central bank Federal Reserve (Fed) on Wednesday and the Swedish Central Bank on Thursday.
The krona is falling slightly from Monday's peaks around 9.60 kronor per dollar.
