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European shares surge to fresh highs

Wednesday, September 12 16:44:14

European shares rose to fresh highs today as a ruling from a top German court paved the way for policymakers to take new steps to tackle the euro zone's debt crisis, prompting some traders to take profits late in the session.

Attention now switches to a U.S. Federal Reserve meeting this week, with investors uncertain as to whether the Fed will launch new stimulus measures to help the struggling U.S. economy.

The FTSEurofirst 300 index provisionally closed up 0.1 percent at 1,108.01 points, having at one stage reached an intraday peak of 1,115.90 points - its highest level since early July 2011. The euro zone's Euro STOXX 50 index rose 0.3 percent to 2,564.35 points.

Germany's top court gave a green light for the country to ratify the euro zone's new bailout fund and budget pact, but insisted the German parliament have veto powers over any future increases in the fund's size.

"We closed out some small short positions on the (French) CAC and the Euro STOXX. It's another building block for a better situation in Europe," said Clairinvest fund manager Ion-Marc Valahu. (C ) Reuters