“U.S. stocks rose, sending the Standard & Poor’s 500 Index toward a four-year high, after Germany’s highest constitutional court allowed the country to ratify the euro area’s permanent bailout fund,” Inyoung Hwang reports for Bloomberg. “Apple Inc. (AAPL) gained 0.5 percent before the company introduces its redesigned iPhone later today.”
“The S&P 500 added 0.4 percent to 1,438.81 at 9:40 a.m. in New York, surpassing the highest close since 2008 set last week. The Dow Jones Industrial Average gained 43.80 points, or 0.3 percent, to 13,367.16 today. Trading in S&P 500 companies was up 32 percent from the 30-day average at this time of day,” Hwang reports. “Germany’s Federal Constitutional Court dismissed motions that sought to stop the government from contributing to the rescue facility known as the European Stability Mechanism. The legal challenge delayed efforts by Chancellor Angela Merkel and other euro-area policy makers to stem the region’s debt crisis. The judges ruled that parliament must approve any increase of the country’s 190 billion euros ($245 billion) of liabilities.”
“In the U.S., the Federal Reserve begins a two-day meeting today amid speculation policy makers will provide more stimulus. The central bank will probably announce a third round of bond purchases tomorrow, according to almost two-thirds of economists in a Bloomberg survey. The central bank will also likely commit to hold interest rates close to zero into 2015, the survey showed,” Hwang reports. “Chairman Ben S. Bernanke and his colleagues on the Federal Open Market Committee will opt for further quantitative easing to support an economy that grew at less than 2 percent in the second quarter, according to economists. The unemployment rate has remained above 8 percent for 43 consecutive months. Stocks have rallied on expectations of easing by the central bank.”
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