Thursday, September 13, 2012

Stocks extend rally after German court ruling

CNBC's Steve Liesman reveals the latest result from CNBC's survey on what the markets expect from the next round of Fed easing, with CNBC's Rick Santelli.

By NBC News wire services

Updated at 4:05 p.m. ET: Stocks inched higher Wednesday, adding to a recent rally, after a German Constitutional Court permitted the ratification of the euro zone's new bailout fund as the region continues to battle its debt crisis.

The court allowed Germany to ratify the new rescue fund and budget, but also gave parliament veto powers over any future increases in the size of the fund.

Earlier, European stocks rose to their highest level in 14 months and yields on Spanish and Italian debt fell after the decision.

On Tuesday the Dow Jones industrial average closed at its highest level in nearly five years ahead of the German court?s decision and possible policy action from the Federal Reserve.

The decline in Spanish bond yields to well below 6 percent prompted Spain's Prime Minister Mariano Rajoy to say improved market conditions may make aid unnecessary.

The Federal Open Market Committee is set to begin a two-day meeting on Wednesday. The central bank looks set to launch a third round of bond purchases this week to drive borrowing costs lower and breathe more life into an economy that is not growing fast enough to reduce unemployment.

Apple Inc was in focus on Wednesday after the company unveiled its newest iPhone.

Facebook Inc shares rose after CEO Mark Zuckerberg soothed investors in his first major public appearance since the No. 1 social network's rocky May IPO; he hinted at new growth areas from mobile to search.

Reuters contributed to this report.

Source: http://marketday.nbcnews.com/_news/2012/09/12/13827419-stock-extend-rally-after-german-court-ruling?lite

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