Stocks to rise on German court ruling- U.S. stocks were headed for a higher open Wednesday after a German court backed Europe’s latest rescue fund.
Germany’s Constitutional Court dismissed complaints on the legality of the European Stability Mechanism, a permanent bailout fund that’s expected to have a maximum lending capacity of €500 billion.
Markets around the world initially rose on the news, but European stocks turned mixed in afternoon trading. Britain’s FTSE 100 lost 0.1%, while the DAX in Germany jumped 1.9% and France’s CAC 40 rose 1.2%.
Asian markets, which closed ahead of the German court decision, ended higher.
Investors were anxious about how the ruling would impact the European Central Bank’s plans to preserve the euro, which remained at its highest level against the U.S. dollar in four months early Wednesday.
“This is good news for the EU and has certainly been reflected in the value of the euro across the board,” said Chris Towner, director of foreign exchange advisory services at HiFX. “This gives a foundation for the EU leaders to start to put a proper framework in place for further integration.”
As stocks around the globe reacted, investors bailed out of U.S. Treasuries, sending the yield on the benchmark 10-year note up to 1.74% from 1.69% late Tuesday.
In corporate news, Apple (AAPL, Fortune 500) is expected to unveil the iPhone 5 at an event later Wednesday . Shares of the company were higher as investors awaited the announcement.
U.S. stocks advanced Tuesday, rebounding from the previous day’s pullback.
more at Premarkets: Stocks to rise on German court ruling – Sep. 12, 2012.
The Dow Jones index has also been up yesterday and moderately today, at 5 year Highs, recovering all that was lost in the great recession of 2008.
Meanwhile Apple released the IPhone5, nothing revolutionary about it, but still among the best in its class if not the best.
The markets in the US continued to stay positieve today and Apple hit a new all time high, within striking distance of $700 a share!