HSBC's chief economist Paul Bloxham says there is optimism that things will get back to normal soon.

 

“I think the story here is essentially(口误）. The market is saying that the government's shutdown, ah, they think that the Republicans at some point will probably have to back down and the...the ..they will actually get through the debt ceiling issue. And of course, at the same time, the markets are probably thinking the Federal Reserve is unlikely to be tapering any time soon. So I think that’s probably what’s lifted the market a little bit.”

 

Australia's Reserve Bank is now in wait-and-see mode after leaving the official interest rate steady at 2.5 per cent. The low rate is pushing up average capital city home prices, but analysts say other parts of the economy are still subdued.

 

RBA governor Glen Steven says current monetary policy remains appropriate for now. 

 

Let’s go to the markets.

 

The Dow closed 62 points higher. The Nasdaq is 47 points up. The S&P 500 is 13 points up higher. London’s FTSE was steady at the close. 

 

To commodity prices. 

 

West Texas Crude is at 102 US dollars a barrel. Ta...Tapis Crude is at 116 US dollars a barrel. Gold is 1288 US dollars an ounce.

 

Australian dollar is buying 94 US cents, 69 Euro cents, and 58 pence sterling.