Markets await German constitutional court ruling on ECB's OMT policy

The big event today looks to be the ruling on the European Central Bank's (ECB) Outright Monetary Transactions (OMT) policy. The German constitutional court will start its hearing today.

Before the ruling, ECB president Mario Draghi tried to calm fears that OMT would mean German taxpayers bailing out insolvent Eurozone nations.

“We will not intervene to generally ensure the solvency of a country,” he said in a radio interview. “German taxpayers’ risk is today significantly lower than a year ago.”

Any country benefiting from the OMT would have to sign up to a tough programme of economic reforms, emulating those made by Germany a decade ago.

Other events today:

  • Data on the UK's industrial and manufacturing output for April will be released by the ONS at 09.30.
  • Think tank NIESR will release its GDP estimate at 15.00.