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The dark clouds that were hanging over Washington are starting to pass as negotiations between the Democrats and Republicans improve. The fear of a US default has left some investors paralysed, but the progress that has been made could pave the way for a deal and that sentiment is driving stocks higher. Thursday is the deadline for the debt ceiling, while the parties are also closer to resolving the shutdown saga. If the US' credit rating remains unchanged stocks could continue to rise.
Burberry is the biggest loser on the FTSE 100 this morning. The fashion retailer posted a first-half revenue of over £1 billion but the announcement that CEO Angela Ahrendts is to leave the company next year has put a dampener on the results.
Royal Mail has gone from strength to strength – today is the first day of unconditional trading and the stock is already up 47% from the IPO price. Mining titan Rio Tinto has reported a record level of iron ore and coal output and has raised its copper output for the year.
In the US we are expecting the Dow Jones to open ten points higher at 15,311, as a debt-ceiling deal nears.