LONDON, Sept 12 (Reuters) - European shares and the euro rose on Wednesday while Italian and Spanish bonds were little changed after Germany’s top court gave its backing to the euro zone’s new 700 billion euro European Stability Mechanism bailout fund.
German approval of the ESM was crucial to boost the euro zone’s crisis fighting powers and a key requirement for the European Central Bank’s new plan to buy the bonds of struggling euro members.
European shares extended gains after the ruling and were up 0.4 percent. The euro hit a new four month high of $1.29017 from $1.2845. German Bund futures fell to a session low of 139.75.