This morning, the S&P 500 Index e-mini futures (ES-U2) are trading higher by 5.75 points to 1436.25 per contract. Earlier today, the Constitutional Court ruled that the European Stability Mechanism (ESM) is legal. The one stipulation from the high court was that Germany would only contribute €190 billion. That cap could be raised with parliaments approval. Most of this news is already factored into the market already. Some equities that are rallying on this court ruling include Bank of Ireland (ADR)(NYSE:IRE), National Bank of Greece (ADR) (NYSE:NBG), Credit Suisse Group AG (ADR) (NYSE:CS), UBS AG (NYSE:UBS), and Banco Santander, S.A. (ADR) (NYSE:SAN). The bottom line, the stock market loves inflation creation by the central banks and the recent move in asset prices proves that.
Tomorrow, the Federal Reserve (U.S. central bank) will finish its two day Federal Open Market Committee meeting. Most traders and investors are eagerly awaiting the central bank of the world to announce its next quantitative easing program (QE-3). Most investors believe that the Federal Reserve Bank Chairman Ben Bernanke gave the green light for QE-3 at his Jackson Hole speech in late August. We shall see soon enough tomorrow. Gold, silver, copper, and oil have all been soaring higher on the anticipation of this announcement.