Global shares slide, ESM ruling pledge lifts euro

Safe-haven assets were back in demand on Tuesday as investors played a waiting game ahead of a German ruling on the euro zone’s new bailout fund, an election in the Netherlands and potential new stimulus from the U.S. Federal Reserve.European shares .FTEU3, which jumped to 13-month highs last week after the European Central Bank laid out new plans to address the region’s debt crisis, were in negative territory for the second day running at 0940 GMT, 0.44 percent lower at 1,098.66 points.London’s FTSE 100 .FTSE, Paris’s CAC-40 .FCHI and Frankfurt’s DAX.GDAXI were all lower .L .EU .N, following on from Asia, where investors, increasingly wary about China’s wobbling economy, took profits from the recent stimulus-led rally.Europe is having another testing week as it seeks to pull itself out of its debt woes.Despite a late legal challenge from a eurosceptic lawmaker, Germany’s constitutional court will rule on the powers of the euro zone’s new ESM bailout fund on Wednesday, approval vital to release funds to recapitalize struggling Spanish banks.

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Global shares slide, ESM ruling pledge lifts euro