Keystone's Morning Wake-Up 9/12/12; Rajoy Balks at Bailout; German Vote; Dutch Elections

China’s Wen says that further stimulus is on the table which helps lift Asian and European stocks but the basic materials, miners, and copper sectors are all unexpectedly weak on the money pumping news. The violence escalates at the platinum mines and now ripples thru to other mines casting a shadow on the sector today.  Rajoy is resistant to any conditionality attached to a bailout request and says that he may delay the request. Markets are in a small tizzy since there is no more time for Spain. The 10-year yield has dropped under 6% as some calm has returned after Draghi’s announcement last week, but the fear is that Spain's yield can be back above 6% and moving higher in a heartbeat. The dollar is at a four-month low.  The euro is sitting on the 200-day MA and needs to pick a direction, up or down, and the equity markets will move in the same direction. Barroso, European Commission President (E.U.), provides his ‘state of the union’ speech to the EU parliament and calls for a ‘Federation of States’, not a ‘Super-State’. This discussion is important in reference to developing a banking union to handle the debt crisis.  The German vote is imminent, in minutes, at 4 AM EST, 9 AM U.K., 8 AM GMT. The Dutch elections are important today as well.

Note Added 9/12/12 at 4:07 AM: The German court is now shown on live feeds. No word yet on the ruling. The euro is fluctuating from 1.2860 down to 1.2829, now back up to 1.2855, very jumpy, all in the last five minutes.

Note Added 9/12/12 at 4:12 PM:  The German court is reading the lenghthy risk of complaints, then will read who is present and accounted for at the court today, then read the ruling, so another five minutes perhaps.

Note Added 9/12/12 at 4:27 AM:  The German Court allows ESM with conditions.  A cap is set for German liability and this cap needs identified when the ESM is officially signed into law. The German Court says everything done to date for the European debt crisis appears acceptable, but any future measures will likely have to be reviewed by the German Parliament moving forward. This stipulation could lead to time constraint problems for handling problems that need quick attention in the future. The risk-on trade occurs in global markets with the euro jumping up towards 129, European equity markets moving higher and the S&P futures jumping from up two to up over seven points. Voting is underway in the Netherlands.

Note Added 9/12/12 at 4:33 AM:  The German cap limit is 190 billion euro's. As time moves along further details on the German conditions are provided. S&P's remain up six. Merkel will speak today.