Thursday 13 September 2012

German court clears bailout fund amid positive global economic data

The reports on Wednesday were mostly positive for the global economy.

In the euro area, a potential obstacle to the bailout of indebted countries was cleared. Reuters reports:

Germany's Constitutional Court gave a green light on Wednesday for the country to ratify Europe's new bailout fund, boosting hopes that the single currency bloc is finally putting in place the tools to resolve its three-year old debt crisis.

Another piece of good news for the euro area on Wednesday was a report showing that industrial production in the region rose 0.6 percent in July.

Elsewhere in Europe, there was also good news from the UK, where the number of people claiming jobless benefit fell by 15,000 in August, the largest in two years.

And earlier on Wednesday, Japan had reported that core machinery orders jumped 4.6 percent in July, the second consecutive monthly increase.

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