US hopes drive stocks higher

Equity markets are performing well as the US government gets closer to resolving the political deadlock over its debt limit.

The debt-ceiling deadline is on Thursday and it is finally looking more likely that a deal will be reached, meaning traders are less worried about the possibility of the US defaulting on its debts. The current proposition being discussed between the Democrats and Republicans would bring an end to the partial shutdown and satisfy the country’s borrowing needs until the new year.

In London, Burberry's revenue from stores opened at least a year has increased by 13%. However it is not all positive news for the fashion house, as CEO Angela Ahrendts is set to leave next year to join Apple, and the stock is down 5.4% as a result.

Bellway has revealed a 10% rise in annual revenue. The homebuilder announced a 50% increase in dividend, and the stock is trading up 3.9% on the day.

In the US we are expecting the Dow to open ten points lower at 15,291, while Citigroup announced that earnings per share missed estimates. 

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