European markets look set to build on yesterday's strong gains after US markets had their second best day this year on optimism that politicians on Capitol Hill are close to coming to a temporary agreement to extend the deadline for raising the debt ceiling, without any preconditions by six weeks after President Obama indicated he would consider the proposal. The President did indicate that he would have to look at the detail of any proposal, and while he would prefer a much longer term extension, given the stakes at play, was prepared to look at the detail of the Republican proposal. On the positive side of things the fact that the two sides are talking to each other is progress and as we well know jaw-jaw is better than war-war. While averting an imminent default, any agreement would not re-open the government, or repair the damage being done to the US economy, caused by the current shutdown, which makes yesterday's market rally somewhat irrational, even if it is understandable in the context of the fact that politicians are actually starting to wake up the consequences of their actions, and inching back from the abyss of a potential default. A look at the opinion polls may have also been rather sobering for the Republicans with a majority of Americans blaming them for the log jam, which may explain the slight softening of their positions. As we head into day 11 and the weekend, one thing is certain, there is bound to be a lot more twists and turns in this saga over the next few days. In any case an agreement to extend the deadline also only serves to shift the debate nearer to the Thanksgiving break, which would obviously mean potentially another six weeks of this political nonsense. With little in the way of economic data being released one can only guess at the damage being done to the US economy, but yesterday's jobless claims did offer a little clue, with a sharp jump to 376k, a six month high. Today's University of Michigan consumer sentiment indicator for October is the only US data which is likely to be released today and we could expect to see a significant dent put in this particular indicator given the current environment. Expectations are for a drop from 77.5 to 77.2, but it wouldn't be too much of a shock to see a larger fall. The G20 and IMF meetings currently being held in the US are all expected to play second fiddle to the shenanigans going on Washington. In company news Royal Mail Group makes its long awaited debut on the London Stock Exchange with expectations that the opening price will be well above the governments 330p issue price. Also today Centrica is amongst a number of stocks going going ex-dividend. In the US we can also expect the bank earnings season to start with JP Morgan set to release its latest numbers. CMC Markets is an execution only provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person