FTSE rises as US debt-ceiling deal nears

In mid-morning trading the FTSE 100 is up 40 points, with traders now optimistic a deal will be reached over the US debt ceiling.

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.

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. See full non-independent research disclaimer and quarterly summary.

Find articles by analysts

This information has been prepared by IG, a trading name of IG Markets Limited and IG Markets South Africa 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. International accounts are offered by IG Markets Limited in the UK (FCA Number 195355), a juristic representative of IG Markets South Africa Limited (FSP No 41393). South African residents are required to obtain the necessary tax clearance certificates in line with their foreign investment allowance and may not use credit or debit cards to fund their international account.