The highest court in Germany ruled that the country could contribute to Europe’s $640 billion rescue fund to help indebted governments. The ruling offered investors relief, but not much more.
The issue was “more speed bump than hurdle,” Dan Greenhaus, chief global strategist at the brokerage BTIG, told clients. “More legislative and political challenges lay ahead. Today’s ruling simply does nothing to change that larger story.”
The Dow Jones industrial average climbed 9.99 points to close at 13,333.35, a four-year closing high. The Standard & Poor’s 500 index added an even 3 points to 1,436.56, also close to a four-year high.
The ruling helped push Germany’s main stock index, the DAX, to its highest level since July of last year. The euro rose to a four-month high against the dollar.
When the Fed wraps up its meeting Thursday, investors and economists expect it to announce new steps to stimulate economic growth, especially after a Labor Department report showed employers added fewer than 100,000 jobs last month.