German constitutional court announced a ruling in the ECB QE case today. Judges dismissed complaints with a 7-1 vote. However, things are not so simple. Court said that some parts of the asset purchase programme are in breach of the German constitution. Moreover, it was also said that ECB decisions are not backed by EU treaties. The court gave ECB 3 months to fix issues. In case no fix is made, Bundesbank may not be able to participate in ECB stimulus programmes. Court also said that German government should have opposed idea of ECB bond buying. The ruling itself is quite ambiguous and so was the reaction of the market - both EUR and DAX swung on headlines but both ultimately moved lower.
DE30 was very volatile during the ruling announcement but ultimately moved lower. Source: xStation5
