Wall Street Stocks Climb - NYTimes.com Stocks rose on Wall Street on Tuesday ahead of possible policy action from the Federal Reserve and a key decision by a German court. A fresh report that said the trade deficit in the United States had widened helped boost the euro. The Standard & Poor's 500-stock index moved ahead by 0.5 percent in morning trading, the Dow Jones industrial average gained 0.7 percent and the Nasdaq composite index added 0.3 percent. Germany's Constitutional Court on Wednesday was expected to approve the European Stability Mechanism - the euro zone's new bailout fund - but legal experts believe it will impose tough conditions limiting Berlin's flexibility on future rescues. Investors also were awaiting a decision by the Federal Reserve on any additional stimulus measures when the central bank announces its policy decision after a two-day meeting on Thursday. Equities have rallied on expectations for fresh stimulus measures from central banks, with economists forecasting a 60 percent chance the Fed will announce another round of quantitative easing. Another event that could cause turbulence in markets is a Dutch general election on Wednesday, with voters divided between bailouts for troubled euro zone economies and local austerity measures. "It is one of those "wait and see days" days, where we have a week full of catalysts that basically start tomorrow so with that, this market probably sees a day full of sideways action," said Art Hogan, managing director of Lazard Capital Markets in New York. The euro traded up 0.8 percent to $1.2865 after the government said the American trade deficit grew slightly in July, as exports to Germany, France and other European nations shrank and imports from China soared to a record. The monthly trade shortfall was $42 billion, compared to a downwardly revised estimate of $41.9 billion for June. Analysts surveyed before the report had expected a bigger shortfall of around $44 billion. The ongoing debt crisis in Europe appeared to be taking a toll on demand, with American exports to the 27 nations of the European Union falling 11.7 percent in July. Exports to Germany were the lowest since February 2010 and the trade deficit with the European Union was the biggest since October 2007. Still, overall American exports totaled $183.3 billion, down just 1 percent from a record high in June. In European markets, the rally in equities remained in sight of 13-month highs. The DAX index in Germany jumped 1.4 percent, while the CAC 40 in France gained 0.9 percent. The FTSE 100 in London fell 0.1 percent. European soveriegn bond prices rose by a sliver. Asian shares fell as investors repositioned before the week's pronouncements.