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.

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