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| Global Stocks Rise on Optimism About Euro Bailout Fund | Global Stocks Rise on Optimism About Euro Bailout Fund |
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| PARIS — Global stocks rose on Wednesday amid expectations that a German court would give its approval to an expanded euro zone rescue plan. | PARIS — Global stocks rose on Wednesday amid expectations that a German court would give its approval to an expanded euro zone rescue plan. |
| The Constitutional Court in Karlsruhe will issue a ruling at 10 a.m. on whether to bless the new European Stability Mechanism, the permanent bailout fund the euro zone has concocted. The court is deciding on the merits of a case brought by a group of German lawmakers and citizens that calls for a temporary injunction against their country’s participation in the mechanism. | The Constitutional Court in Karlsruhe will issue a ruling at 10 a.m. on whether to bless the new European Stability Mechanism, the permanent bailout fund the euro zone has concocted. The court is deciding on the merits of a case brought by a group of German lawmakers and citizens that calls for a temporary injunction against their country’s participation in the mechanism. |
| Germany’s participation is essential for the bailout fund’s operation, and the court’s rejection of the plan would destroy the underpinnings of the European Union’s hopes for overcoming the crisis of confidence in government finances that has rocked the bloc beginning late 2009. | Germany’s participation is essential for the bailout fund’s operation, and the court’s rejection of the plan would destroy the underpinnings of the European Union’s hopes for overcoming the crisis of confidence in government finances that has rocked the bloc beginning late 2009. |
| Most German constitutional experts expect the court to give its backing, though perhaps with some conditions that could complicate further progress. | Most German constitutional experts expect the court to give its backing, though perhaps with some conditions that could complicate further progress. |
| In addition to the German court ruling, investors on Wednesday were also keeping an eye on Strasbourg, France, where José Manuel Barroso, the president of the European Union’s administrative arm, the European Commission, was to present a long-awaited proposal for encouraging closer integration of euro zone banks, with the European Central Bank assuming regulatory oversight of all banks in the 17 European Union countries that use the euro. | |
| And in the Netherlands, voters were going to the polls Wednesday for an election in which the euro zone bailouts have figured heavily, with many Dutch opposed to further aid to Europe’s ailing southern tier. No single party is expected to take a majority, with a likelihood that political horse-trading to form a coalition government could go on for some time. | And in the Netherlands, voters were going to the polls Wednesday for an election in which the euro zone bailouts have figured heavily, with many Dutch opposed to further aid to Europe’s ailing southern tier. No single party is expected to take a majority, with a likelihood that political horse-trading to form a coalition government could go on for some time. |
| The growing confidence that the bailout fund will see the light of day, along with the European Central Bank’s strong support for ailing governments in Spain and Italy, has helped to restore some normality to a European market that has at times appeared | The growing confidence that the bailout fund will see the light of day, along with the European Central Bank’s strong support for ailing governments in Spain and Italy, has helped to restore some normality to a European market that has at times appeared |
| In early trading, the euro rose to $1.2860 from $1.2855 late Tuesday in New York. The Euro Stoxx 50 index, a barometer of euro zone blue chips, gained 0.3 percent, while the FTSE 100 index in London was unchanged. Trading in Standard & Poor’s 500 index futures suggested Wall Street stocks would get a lift at the opening bell. Asian stocks were higher across the board. | In early trading, the euro rose to $1.2860 from $1.2855 late Tuesday in New York. The Euro Stoxx 50 index, a barometer of euro zone blue chips, gained 0.3 percent, while the FTSE 100 index in London was unchanged. Trading in Standard & Poor’s 500 index futures suggested Wall Street stocks would get a lift at the opening bell. Asian stocks were higher across the board. |
| The E.C.B. made its support clear on Sept. 6, when the central bank’s president, Mario Draghi, said the institution would give unlimited financial backing to Spain and Italy, signaling his readiness to buy their government bonds to drive down yields in return for their commitment to budgetary discipline. | The E.C.B. made its support clear on Sept. 6, when the central bank’s president, Mario Draghi, said the institution would give unlimited financial backing to Spain and Italy, signaling his readiness to buy their government bonds to drive down yields in return for their commitment to budgetary discipline. |
| One of the questions hanging over the new bailout fund is whether and when Spain, the most urgent candidate for support, will ask for a rescue. Newspapers in Finland on Wednesday reported that the Spanish prime minister, Mariano Rajoy, might ask for the central bank’s bond-buying support without requesting a full bailout, Reuters reported. | One of the questions hanging over the new bailout fund is whether and when Spain, the most urgent candidate for support, will ask for a rescue. Newspapers in Finland on Wednesday reported that the Spanish prime minister, Mariano Rajoy, might ask for the central bank’s bond-buying support without requesting a full bailout, Reuters reported. |