The German stock market tumbled on Monday as investors reacted to news that German Chancellor Angela Merkel's party and the Social Democrats (SPD) failed to agree to a coalition government on Sunday.
Talks between the parties are now continuing into Monday and perhaps beyond.
The German DAX opened 100 points lower at 12,685 on Monday morning, before falling further to trade 140 points, or 1.1 percent, lower. By mid-morning, the DAX had pared some losses but was still trading 83 points lower.
Market jitters have risen over the possible outcome of talks between Merkel's Christian alliance of Christian Democrats and Christian Social Union (CDU-CSU) and the SPD. The global market sell-off is not helping sentiment either.
It is now months since the country's federal election back in September 2017, which failed to produce an outright winner. The result led to protracted talks between major and minor political parties in Germany aimed at forming a coalition government.