Indices gain as US debt issues recede

In mid-morning trading the FTSE 100 is up over 20 points, as equity traders return to form and a risk-on mentality.

Global markets can now afford to forget about the US budget and debt ceiling, at least until December, or that is certainly the impression you get when glancing at this morning’s European indices. The disruption that will have occurred to the US economy is unlikely to derail the fragile recovery, but could well be enough to ensure that the Federal Reserve’s current QE plans remain unchanged at least until 2014. It might take retail investors a day or two to catch their breath but you suspect institutional investors are already hunting around for equity opportunities.

Anglo American's statement this morning confirmed that its copper production increased by almost a third, and is likely to be replicated by several copper producers. Fortuitously copper prices have been given support today from the encouraging economic data out of China, although in 2014 supply could increase.

The never-ending list of banks receiving fines for various misdemeanours has seen HSBC hit with a $2.46 billion fine for digressions from its US subsidiary, Household International.

Google’s third-quarter figures has set the markets alight now that traders are able to refocus on corporate news. After climbing as high as $960 in after-hours trading, with a number of institutional analysts increasing their price targets north of the $1000 level, we are sure to see a lively day's trading when US markets open.

The US dollar index has taken a bit of a pounding in the last 24 hours and at this rate looks set to retest its February lows. Ahead of the open, we expect the Dow Jones to start 18 points higher at 15,389.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.