Stocks rose in New York on Tuesday ahead of a
meeting of the US Federal Reserve and a decision by a German court
that may determine the fate of eurozone rescue efforts.
The German Federal Constitutional Court said it would deliver as
scheduled Wednesday morning its decision on the new 700-billion-euro
(895-billion-dollar) bailout fund - the European Stability Mechanism
(ESM).
The ESM was to have started operating in July, but its launch was
delayed by the court's deliberations. As the major contributor,
Germany's backing is needed if the new bailout fund is to come into
force.
Meanwhile the Federal Reserve was to begin two days of meetings
Wednesday and Chairman Ben Bernanke has hinted further stimulus was
under consideration. The Fed is to make its decision known Thursday,
when Bernanke will also hold a closely watched press conference.
The blue-chip Dow Jones Industrial Average gained 69.07 points, or
0.52 per cent, to 13,323.36. The broader Standard & Poor's 500 Index
added 4.48 points, or 0.31 per cent, to 1,433.56. The
technology-heavy Nasdaq Composite Index remained little changed,
adding 0.5 points, or 0.02 per cent, to 3,104.53.
The US currency fell against the euro to 77.8 euro cents from
78.38 euro cents on Monday. The dollar fell against the Japanese
currency to 77.78 yen from 78.27 yen.
