Markets await result of German court ESM ruling

The German constitutional court is expected to rule today on whether the European Stability Mechanism is in line with the constitution.

If it rejects the EU rescue fund, it could throw the markets into turmoil and ratchet up the euro crisis that has calmed in recent days after the ECB announced bond buying.

Ireland is hoping for a swift implementation of the ESM fund as it will have the power directly to capitalise banks, and the Government is hoping it will lend €62bn to cover the money used to restructure banks.