In Europe the FTSE, CAC, and DAX all added between 0.5% – 0.7%, whilst in the US the action was a little more mixed.
The Dow shed 43 points (-0.3%) on the back of a poor result from Caterpillar, whilst the broader S&P was largely unchanged and the tech-heavy Nasdaq added 0.9%.
All of that news, however, has been overshadowed by the events of the weekend.
US lawmakers have failed to come to agreement on raising the country’s $14.3 trillion debt ceiling, in turn increasing the odds of a default as early as next week.
The Republicans ignored a presidential veto threat by preparing a short-term extension of the US debt limit, despite warnings that a stalemate could significantly impact financial markets.
The breakdown has spooked markets this morning with equity index futures moving sharply lower and currency markets also reacting violently.
The greenback has weakened against the Swiss franc and yen, whilst the risk currencies have come under pressure as investors move money into safe-haven assets amid the uncertainty.
Today’s session will bring us local data in the form of the producer price index, at 11:30am, AEST.