May 18, 2013
Global shares higher after German ruling
Stocks rose after Germany's Constitutional Court approved the euro zone's new rescue fund, easing concerns about the region's debt crisis and leaving markets focused on prospective further easing by the US Federal Reserve.
The Dow Jones industrial average gained 9.99 points, or 0.07 percent, to 13,333.35. The Standard & Poor's 500 Index was up 3.00 points, or 0.21 percent, at 1,436.56. The Nasdaq Composite Index was up 9.79 points, or 0.32 percent, at 3,114.31.
European shares rose though benchmark Italian and Spanish bonds were little changed today 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 were up 0.65 percent after the decision, having been up just 0.07 percent beforehand. The MSCI global share index hit a 5-month high of 331.99 points.
Japan's Nikkei average hit a two-week closing high on Wednesday and edged toward the key 9,000-mark on expectations that the Federal Reserve will announce measures to stimulate the US economy and that a German court will approve the legality of the euro zone's bailout funds.
The Nikkei climbed 1.7 percent to 8,959.96, breaking above 8,881, the 38.2 percent retracement of its rally from July 25 to August 20 but holding below its 25-day moving average at 8,960.58.
The benchmark is up 6 percent so far this year.The broader Topix advanced 1.3 percent to 741.82. Nearly 1.55 billion shares changed hands, up from yesterday's 1.31 billion but down from last week's average of 1.61 billion.