Wednesday, September 12 09:27:00
There has been a positive result from the German Constitutional Court this morning however there are conditions to its approval of German involvement in the bond scheme proposed by the ECB. The Euro rose immediately and is currently trading around 1.2880 against the Dollar although there has been quite a lot of volatility in the immediate aftermath of the German announcement. Reuters reports that European shares and the euro rose while Italian and Spanish bonds were little changed after Germany's top court gave its backing to the euro zone's new 700 billion euro European Stability Mechanism bailout fund.
German approval of the ESM was crucial to boost the euro zone's crisis fighting powers and a key requirement for the European Central Bank's new plan to buy the bonds of struggling euro members. European shares rose to stand up 0.14 percent on the day having stood up 0.07 percent just ahead of the decision. The euro hit a new four month high of $1.29017 from $1.2845. German Bund futures fell to a session low of 139.75.