Investors await German Constitutional Court’s ruling on ESM
Mansur Chowdhury September 12, 2012 4:00 PM
<p>- Midway through the trading week and we have seen the UK main index slightly lower in early trading. It appears investors were awaiting the […]</p>
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- Midway through the trading week and we have seen the UK main index slightly lower in early trading. It appears investors were awaiting the German Constitutional Court’s ruling on whether it would allow Germany to join the ESM, which is a fund worth around 500bn euros and is for a bailout for debt-ridden countries in the eurozone. As the news broke earlier that they have, we’ve seen a surge in demand and major markets have turned positive.
- The FTSE is at 5805, so higher by 15 points, the DAX is at 7385, up 70 points, and the CAC is at 3560, up 25 points. So a positive reaction seen to the ruling. RBS and Lloyds lead the way, up 3.5% and 2.2% respectively. Barclays are also higher by 1.1%.
- Sage Group are also amongst the leaders, up by 2.3% on the back of M&A rumours. The biggest faller is interdealer broker ICAP, which received a broker downgrade from Morgan Stanley and are currently 2.2% lower at 330.70p.
- European economic data is likely to dominate, with the UK jobless claims out a bit later this morning, as well as EU Industrial Production figures.
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