German court ruling may lead to early strength on wall street
Baku, September 15 (AZERTAC). With traders reacting positively to the latest news out of Europe, stocks are likely to move to the upside in early trading on Wednesday. The major index futures are currently pointing to a moderately higher open for the markets, with the Dow futures up by 45 points.
The upward momentum for the markets comes on the heels of news that Germany`s Federal Constitutional Court cleared the way for the ratification of the European Stability Mechanism, or ESM, rejecting temporary injunctions against the European bailout fund.However, the court imposed certain conditions, including capping Germany`s liability. The court said Germany must cap its bailout fund liability at 190 billion euros and said further expansion of the country`s share needs to get the backing of Parliament.Peter Boockvar, managing director at Miller Tabak, said, "Buy the rumor, buy the news continues to be the market pattern as long as participants have their central bank beer goggles on which turns all news into good news."
While the news out of Germany has generated some positive sentiment, buying interest may be somewhat subdued ahead of the Federal Reserve`s monetary policy announcement on Thursday.
Uncertainty about whether the central bank will announce another round of quantitative easing is likely to keep some traders on the sidelines.
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