Markets see relief rally following US default deal UK retail sales come in stronger than expected

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Gains were seen across the globe yesterday after US politicians closed in on an agreement to end the government shutdown and avoid a debt default.

The Dow was up by as much as 200 points at the high, but the markets were down this morning as investors reacted to what some had seen to be a relief rally.

The Dow was at 15260 by 10am (UK time). The FTSE opened at 6550, with BskyB reporting strong first quarter revenues and topping the FTSE leader board. Travis Perkins was the biggest loser, falling by 3%.

In currencies, the pound was up against the US dollar, yen and euro, whilst the euro was performing well against the dollar and yen.

At 9.30am UK retail sales figures were released, coming in at 0.6%, which was better than expected.

Investors will now be looking ahead to US unemployment claims at 1.30pm, then the Philly Fed Manufacturing Index at 3pm.

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