German ZEW and German Constitutional Court decision amongst highlights - BBH

Research Team at BBH, suggests that there have been two news developments in the Eurozone. 

Key Quotes

“First, the German Constitutional Court dismissed the suits that challenged the ECB's OMT program.  The Court provided indicated certain activities that must be done to minimize risk to the German budget, but nothing particularly onerous. 

These conditions included things like monitoring the volume and risk structure, no pre-announcing purchases, providing a minimum time before sovereign issuance and ECB purchases, and limiting volume in advance.   The Germany Court also ruled that the sovereign needed to maintain access to the financial markets.  Perhaps, the condition with the most significant implication is that the bonds should not be held until maturity.   

Second, the German ZEW investor survey was better than expected.  The assessment of the current situation increased to 54.5 from 53.1 in May.  This is second consecutive advance off from the fluke low of 47.7 in April (lowest since February 2015).  The expectations component rose to 19.2 from 6.4.  Many had expected decline, and instead now stands at its best level since last August.”