LONDON (Reuters) ? World stocks steadied above a two-week low on Wednesday and the euro rebounded after some more positive data from the United States and Australia helped calm frayed market nerves.
The Swiss franc, which had been along with gold the safe haven of choice for investors, held below 1.2000 per euro, a day after the Swiss central bank set an exchange rate cap to weaken the franc and prevent a recession.
There was no single driver for the rebound. Traders cited a better-than-expected U.S. services survey and Australian growth data as well as speculation Washington may unveil a $300 billion package to create new jobs as factors.
But investors remained nervous, mainly because of concerns that political discord in the euro zone may hamper efforts to solve the euro zone debt crisis and worries that major economies were headed for another recession.
Wednesday's main focus was Germany's top court ruling around 0800 GMT (4 a.m. ET) which may grant legislators more say over future aid to euro zone's most indebted nations.
"All eyes are going to be on the German constitutional court... We don't expect the court to go against the bailouts, but key is the associated red tape which might make closer fiscal integration in the euro zone harder," said Jeremy Batstone-Carr, strategist at Charles Stanley.
MSCI world equity index (.MIWD00000PUS) rose 1.1 percent after hitting its lowest since Aug 22 on Tuesday.
European stocks (.FTEU3) gained more than 2 percent, having hit a two-year low in the previous day.
Emerging stocks (.MSCIEF) added 1.8 percent.
U.S. crude oil rose 0.9 percent to $87.69 a barrel.
Bund futures fell 73 ticks, following a fall for U.S. Treasuries after CNN reported on Wednesday, citing Democratic sources, that U.S. President Barack Obama plans to lay out the job-creation package on Thursday with the proposed new spending offset by budget cuts.
The dollar (.DXY) against a basket of major currencies
The euro rose half a percent to $1.4070, after falling as low as $1.3971 on Tuesday.
The dollar lost 0.3 percent to 77.30 yen.
The Bank of Japan kept its policy settings unchanged and maintained its assessment that the economy was steadily picking up, with output and exports nearly returning to levels before a devastating earthquake and tsunami in March tipped Japan into recession.
(Additional reporting by Brian Gorman; editing by Patrick Graham)
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