Afternoon comment courtesy of Spreadex

European markets hold onto gains with US Futures indicating a higher open for US shares after budget talks drove investors’ appetite for risk. Comments from US Republicans on Wednesday night showed Republicans are looking into a short-term hike in the government’s borrowing authority. This will give time for government officials to come up with a plan to tackle the ever increasing debt pile.

US jobless claims showed more Americans filed for unemployment benefits last week. However, the figure was slightly distorted as California worked through a backlog caused by a switch in computer systems. The partial US shutdown also forced some government contractors to file for benefits. Claims for the week reached 374,000, 67,000 more than predicated.

Earlier today, The Bank of England left its benchmark interest rate and bond-buying plan unchanged as Britain’s economic recovery showed signs of building momentum. BoE Governor Mark Carney kept interest rates at a record low 0.5 percent whilst maintaining the bond-buying program at £375 billion.