The U.S. dollar rose against most major currencies, including the yen, after Senate Majority Leader Harry Reid and Minority Leader Mitch McConnell, the Senate announced an agreement to raise the debt limit and the end of the period of cessation of work of the government.

Reid called the agreement "historic cross-party agreement." It will fund the government through mid-January , and increases the government debt ceiling until February 7 . It also provides a mechanism for reaching an agreement on the budget for the long-term budget issues , which should be completed no later than December 13.

The agreement also includes a system to verify income individuals and families receiving subsidies using the Affordable Care Act .

The Treasury is able to use "extraordinary measures " to work in conditions close to the debt ceiling - if it will not be upgraded until February 7 . This side agreement was a key priority for the White House.

" The compromise we have made will ensure the stability of our economy , in which she so desperately needs " - said Reed.

Republican Senator Ted Cruz told reporters after the message came out of an agreement that he would not try to postpone the vote .

It is expected that the Speaker of the House John Boehner will pass a bill through the House of Representatives with a majority of Democrats . The representative Boehner said it was not yet decided in which order the bill will be conducted through the two chambers of Congress.

Previously, support for the euro had submitted data for the euro area , which showed that by the end of August trade surplus euro area has increased substantially as a modest rebound in exports outpaced import growth . However , despite the sharp increase in the surplus was slightly less than expected.

According to the report , the seasonally adjusted trade surplus rose in August to the level of 12.3 billion euros, compared with a profit in the amount of $ 11 billion in July, which was revised down from 11.1 billion euros. Add that, according to many experts the value of this index would grow to 12.4 billion euros.

Meanwhile, data showed that exports in August amounted to 157.4 billion euros, which was 1.0% more than in July , while imports amounted to 145.1 billion euros, an increase of only 0.2% compared with the previous month.

The pound rose sharply earlier against the U.S. dollar , which was associated with access to better-than -expected data on Britain.

The Office for National Statistics said that by the end of last month the number of people claiming unemployment benefits , significantly decreased , thereby exceeded the forecasts , and its lowest level since January 2009 .

According to the report , in the month of September, the number of applications for unemployment benefits fell by 41,700 , reaching 1,350,000 at the same level . It is worth noting that according to the average forecasts of experts the value of this index was reduced by 24.3 thousand also add that in September 2012 the number of applications for benefits dropped by 214,500 .

In view of the last recession level of applications for employment of unemployed fell in September to a level of 4 percent from 4.2 percent a month earlier. Add that analysts forecast the level of applications was to remain unchanged.

Meanwhile, data showed that the unemployment rate for the three-month period ( August) , calculated by the standards of the International Labour Organization , has remained constant - at around 7.7 percent, which was in line with the forecasts of experts , but less than 0.1 percentage points than the three-month period from March to May.

European stocks rose, erasing their decline in the final two hours of trading, as the Republican leader of the U.S. House of Representatives was said to agree to a Senate proposal to increase the government’s debt limit.

The Stoxx Europe 600 Index advanced 0.2 percent to 315.55 at the close, rebounding from a decline of as much as 0.6 percent. The equity benchmark climbed to its highest level since Sept. 19 yesterday even as the U.S. Treasury said it will exhaust extraordinary measures to keep the country’s borrowing within a debt limit by tomorrow.

Senate Majority Leader Harry Reid, a Democrat, and Minority Leader Mitch McConnell, a Republican, restarted talks late yesterday on a deal to prevent a default. The proposed agreement would also reopen the federal government, which has been closed since Oct. 1.

National benchmark indexes climbed in 14 of the 18 western-European markets. The U.K’s FTSE 100 advanced 0.3 percent and Germany’s DAX added 0.5 percent. France’s CAC 40 (CAC) Index decreased 0.3 percent.

Danone slid 2.3 percent to 51.83 euros. Comparable revenue in the three months through September gained 4.2 percent from a year earlier, the Paris-based company said in a statement. That missed the median of 15 analysts’ estimates of 4.8 percent. Danone also said that its revenue from baby-nutrition products in Asia has declined following the product scare.

LVMH dropped 4.3 percent to 138.70 euros. The Paris-based company said late yesterday that third-quarter revenue advanced to 7.02 billion euros ($9.5 billion) from 6.9 billion euros. Analysts had predicted 7.24 billion euros, according to the median of 15 estimates.

Ubisoft Entertainment SA sank 26 percent to 8.19 euros, the biggest tumble since its initial public offering in 1996. Electronic Arts Inc.’s smaller French rival cut its full-year sales forecast by as much as a third and predicted an operating loss after delaying the release of two major games.

West Texas Intermediate crude climbed on optimism that U.S. lawmakers will agree on a deal to raise the debt ceiling and avoid a default.

Futures rose as much as 0.8 percent on optimism that a framework being negotiated by Senate Majority Leader Harry Reid and Minority Leader Mitch McConnell will end the 16-day-old government shutdown and extend U.S. borrowing authority, which lapses tomorrow. WTI and stocks extend gains as the National Review reported that House Speaker John Boehner was said to agree to take up a Senate plan to end the impasse.

WTI crude for November delivery rose 58 cents, or 0.6 percent, to $101.79 a barrel at 10:40 a.m. on the New York Mercantile Exchange. The contract declined $1.20 to $101.21 yesterday, the lowest settlement since July 2. The volume of all futures traded was about 11 percent above the 100-day average.

Brent oil for November settlement, which expires today, rose 46 cents, or 0.4 percent, to $110.42 a barrel on the London-based ICE Futures Europe exchange. The more-active December contract gained 71 cents to $110.13. Volume was 13 percent higher than the 100-day average.

Gold prices are falling on the background of ongoing negotiations in the U.S. to raise the upper limit of the national debt.

The gold market has not laid in quotes likelihood of a U.S. default , which can occur if the politicians fail to agree by Thursday , as investors assume that the solution will be found at the last moment . The leaders of the Senate of the United States reported that nearly agreed to raise the upper limit of borrowing and renewal of government funding , but on Tuesday an agreement was reached.

The investment firm Nomura Securities noted that gold is usually not growing or declining slightly on the eve of events such as the possible default of the U.S., but may rise later . During previous negotiations to raise the upper limit of U.S. debt in 2011, when the agreement was reached at the last moment , gold has responded only to lower the U.S. credit rating agency Standard & Poor's. In September 2011, the price of gold reached an absolute record $ 1,920 an ounce.

Gold fell by 4 per cent since the beginning of closing the U.S. Government on October 1 , and many observers believe that if politicians fail to agree , the prices will go up.

Surcharges for gold in India, the world leader in its consumption reached a record level of $ 100 per ounce due to lack of supply on the eve of a succession of holidays. Surcharges on the Shanghai Gold Exchange exceeded $ 20 per ounce compared to $ 7 two weeks ago.

The cost of the December gold futures on COMEX today dropped to $ 1268.60 per ounce.

EUR/USD $1.3370, $1.3450, $1.3550, $1.3600

USD/JPY Y98.00, Y98.60, Y98.75, Y98.80, Y99.00

GBP/USD $1.5850, $1.5900, $1.6000, $1.6025, $1.6095, $1.6100

AUD/USD $0.9350, $0.9425, $0.9430, $0.9550, $0.9560

U.S. stock-index futures gained as lawmakers rushed to lock up an agreement on raising the debt limit before tomorrow’s deadline.

Global Stocks:

Nikkei  14,467.14 +25.60 +0.18%

Hang Seng 23,228.33 -108.19 -0.46%

Shanghai Composite 2,193.07 -40.34 -1.81%

FTSE  6,537.12 -11.99 -0.18%

CAC  4,226.01 -30.01 -0.71%

DAX 8,805.23 +0.79 +0.01%

Crude oil $100.95 -0.26%

Gold $1279.60 +0.50%

Upgrades:

Downgrades:

FedEx (FDX) downgraded to Neutral from Buy at Buckingham Research

Other:

Apple (AAPL) added to short term buy list at Deutsch Bank

Apple (AAPL) target raised to $580 from $560 at Canaccord Genuity

Home Depot (HD) initiated with Buy at Sun Trust Rbsn Humphrey

Data

08:30 United Kingdom Average earnings ex bonuses, 3 m/y August +1.0% +1.0% +0.8%

08:30 United Kingdom ILO Unemployment Rate August 7.7% 7.7% 7.7%

08:30 United Kingdom Average Earnings, 3m/y August +1.1% +1.0% +0.7%

08:30 United Kingdom Claimant count September -32.6 -24.3 -41.7

08:30 United Kingdom Claimant Count Rate September 4.2% 4.2% 4.0%

09:00 Eurozone Trade Balance s.a. August 11.1 12.4 12.3

09:00 Eurozone Harmonized CPI September +0.1% +0.5% +0.5%

09:00 Eurozone Harmonized CPI, Y/Y (Finally) September +1.1% +1.1% +1.1%

09:00 Eurozone Harmonized CPI ex EFAT, Y/Y September +1.0% +1.0% +1.0%

09:00 Switzerland Credit Suisse ZEW Survey (Expectations) October 16.3 21.0 24.9

The euro exchange rate rose significantly against the dollar amid continued uncertainty ahead of tomorrow's "Deadline" USA.

We also add that the pressure on the U.S. currency has had a decision of the rating agency Fitch Ratings, which downgraded the outlook for the highest rating of the U.S., which is located at the level of AAA to "negative." Agency refers to the inability of the government to increase the borrowing limit, and the deadline is approaching for this.

"The political balancing act" on the brink "and reduced funding flexibility may increase the risk of a U.S. default," - said Fitch, saying the debt ceiling, according to the agency, is likely to be raised.

It should also be noted that support for the euro had submitted data for the euro area, which showed that by the end of August trade surplus euro area has increased substantially as a modest rebound in exports outpaced import growth. However, despite the sharp increase in the surplus was slightly less than expected.

According to the report, the seasonally adjusted trade surplus rose in August to the level of 12.3 billion euros, compared with a profit in the amount of $ 11 billion in July, which was revised down from 11.1 billion euros. Add that, according to many experts the value of this index would grow to 12.4 billion euros.

Meanwhile, data showed that exports in August amounted to 157.4 billion euros, which was 1.0% more than in July, while imports amounted to 145.1 billion euros, an increase of only 0.2% Compared with the previous month.

The pound rose sharply against the U.S. dollar, which has been associated with access better-than-expected data on Britain.

The Office for National Statistics said that by the end of last month the number of people claiming unemployment benefits, significantly decreased, thereby exceeded the forecasts, and its lowest level since January 2009.

According to the report, in the month of September, the number of applications for unemployment benefits fell by 41,700, reaching 1,350,000 at the same level. It is worth noting that according to the average forecasts of experts the value of this index was reduced by 24.3 thousand also add that in September 2012 the number of applications for benefits dropped by 214,500.

In view of the last recession level of applications for employment of unemployed fell in September to a level of 4 percent from 4.2 percent a month earlier. Add that analysts forecast the level of applications was to remain unchanged.

Meanwhile, data showed that the unemployment rate for the three-month period (August), calculated by the standards of the International Labour Organization, has remained constant - at around 7.7 percent, which was in line with the forecasts of experts, but less than 0.1 percentage points than the three-month period from March to May.

EUR / USD: during the European session, the pair rose to $ 1.3562

GBP / USD: during the European session, the pair rose to $ 1.6060

USD / JPY: during the European session, the pair fell to Y98.28

At 12:30 GMT Canada will report on changes in the volume of manufacturing sales in August. At 14:00 GMT the U.S. will release the housing market index from the NAHB for October. At 18:00 GMT will publish economic survey of the Fed's regional "Beige Book."

EUR/USD

Offers $1.3650, $1.3600/10, $1.3570/80, $1.3550/55, $1.3544

Bids $1.3480, $1.3460/50, $1.3440/35, $1.3420

GBP/USD

Offers $1.6120/25, $1.6100, $1.6070/80

Bids $1.5950, $1.5915/00, $1.5870, $1.5850/40, $1.5820, $1.5800

AUD/USD

Offers $0.9620, $0.9600, $0.9580, $0.9550

Bids $0.9500, $0.9480/75, $0.9435/30, $0.9420, $0.9400

EUR/GBP

Offers stg0.8550/55, stg0.8520/30, stg0.8510, stg0.8495/500

Bids stg0.8425/15, stg0.8400, stg0.8370/65, stg0.8333

EUR/JPY

Offers Y134.50, Y133.90/00, Y133.80/83, Y133.50

Bids Y132.85/80, Y132.50, Y132.25/20, Y132.00

USD/JPY

Offers Y99.50, Y99.20, Y99.00, Y98.80

Bids Y98.05/00, Y97.85/80, Y97.63, Y97.50

European stocks declined from their highest level in almost four weeks as U.S. lawmakers continued to discuss raising the federal government’s debt limit. U.S. index futures gained, while Asian shares fluctuated.

The Stoxx Europe 600 Index retreated 0.3 percent to 313.93 at 8:51 a.m. in London after Fitch Ratings put the U.S. on watch for a possible credit downgrade late yesterday. Standard & Poor’s 500 Index futures gained 0.5 percent, while the MSCI Asia Pacific Index slipped less than 0.1 percent.

The Republican House of Representatives Speaker John Boehner attempted to influence the outcome of the fiscal showdown with a proposal that would reopen the government through Dec. 15, rather than Jan. 15 as the Senate plans. The U.S. will exhaust extraordinary measures to keep borrowing below its debt ceiling tomorrow, according to the Treasury.

Senate Majority Leader Harry Reid and Minority Leader Mitch McConnell restarted negotiations late yesterday on a deal to end the government shutdown and prevent a default.

Senate Talks

“Senator Reid and Senator McConnell have re-engaged in negotiations and are optimistic that an agreement is within reach,” a spokesman for Reid said in a statement. They had suspended their talks, while they waited for the House to act on Boehner’s plan.

Danone fell 3.6 percent to 51.11 euros. The Paris-based company said baby-nutrition revenue fell in the three months through September after recalling infant formula in Asia. Like-for-like revenue gained 4.2 percent from a year earlier, Danone said in a statement, missing the median of 15 analysts’ estimates of 4.8 percent.

LVMH declined 5 percent to 137.60 euros. The Paris-based company said late yesterday that revenue advanced to 7.02 billion euros ($9.5 billion) from 6.9 billion euros. Analysts had predicted 7.24 billion euros, according to the median of 15 estimates compiled by Bloomberg. Sales climbed 8 percent, excluding acquisitions, disposals and currency moves. That missed the 10 percent gain predicted by analysts.

Publicis Groupe SA slipped 1.9 percent to 58.53 euros. The company, which plans to merge with Omnicom Group Inc. to form the world’s biggest advertising firm, reported slower third-quarter sales growth because of weaker spending on adverts in China. Revenue rose 3 percent to 1.68 billion euros from a year earlier, according to a statement. Excluding currency fluctuations and acquisitions, sales climbed 3.5 percent. They had increased 5 percent in the previous quarter.

Ubisoft Entertainment SA sank 24 percent to 8.48 euros. Electronic Arts Inc.’s smaller French rival cut its full-year sales forecast by as much as a third and predicted an operating loss after delaying the release of two major games.

FTSE 100 6,504.59 -44.52 -0.68%

CAC 40 4,216.97 -39.05 -0.92%

DAX 8,784.1 -20.34 -0.23%

EUR/USD $1.3370, $1.3450, $1.3550, $1.3600

USD/JPY Y98.00, Y98.60, Y98.75, Y98.80, Y99.00

GBP/USD $1.5850, $1.5900, $1.6000, $1.6025, $1.6095, $1.6100

AUD/USD $0.9350, $0.9425, $0.9430, $0.9550, $0.9560

Asian stocks swung between gains and losses as U.S. lawmakers resumed talks to avoid a default ahead of tomorrow’s deadline to raise the debt ceiling.

Nikkei 225 14,467.14 +25.60 +0.18%

Hang Seng 23,228.33 -108.19 -0.46%

S&P/ASX 200 5,262.91 +3.76 +0.07%

Shanghai Composite 2,193.07 -40.34 -1.81% 154.64k

Techtronic Industries Co., a maker of power tools that gets about 73 percent of sales from North America, slipped 3 percent in Hong Kong.

Japan Tobacco Inc., Asia’s largest listed cigarette maker, slid 2 percent on a report on how much it would raise prices after the nation’s sales-tax increase disappointed investors.

GungHo Online Entertainment Inc. jumped 16 percent in Tokyo after the game developer and its parent SoftBank Corp. agreed to buy 51 percent of Finland’s Supercell Oy.

The dollar rose versus the yen for the first time in three days after Senate leaders resumed talks to avoid a U.S. default and reopen the government, damping demand for Japan’s haven assets. Senate Majority Leader Harry Reid, a Democrat, and Minority Leader Mitch McConnell, a Republican, had suspended talks earlier while the House considered its own bill. They must now reach a final agreement, get all 100 senators to permit an expedited vote and persuade House Speaker John Boehner to allow a vote that would pass largely with Democratic support.

New Zealand’s currency rose to its highest level in one month as quickening inflation boosted chances of central bank interest-rate rises. Consumer prices rose 0.9 percent from the second quarter, when they gained 0.2 percent, Statistics New Zealand said. That’s more than the 0.8 percent median forecast in a Bloomberg survey.

Gains in the euro may stall with a report today projected to confirm an initial estimate that eurozone consumer prices rose 1.1 percent in September from a year earlier, the slowest pace since February 2010. European Central Bank President Mario Draghi and Executive Board member Yves Mersch are scheduled to speak today.

EUR / USD: during the Asian session the pair fell to $ 1.3505

GBP / USD: during the Asian session, the pair fell to $ 1.5965

USD / JPY: during the Asian session the pair rose to Y98.65

There is only a limited European calendar Wednesday, kicking off at 0600GMT with the release of the EMU September ACEA new car registration data. At 0700GMT, EU Internal Markets Commissioner Michel Barnier is slated to speak to the British Banker's Association in London. There is further EMU data set for release at 0900GMT, when the September flash HICP data and the August trade data will be released. Despite the government shutdown in DC, diplomacy continues and Italian Minister Enrico Letta is set to meet President Barack Obama at the White House. UK employment data is set for release at 0830GMT.

GOLD 1,280.90 4.50 0.35%

OIL (WTI) 100.93 -1.48 -1.45%

Nikkei 225 14,441.54 36,80 0,26%

Hang Seng 23,336.52 118,20 0,51%

S & P / ASX 200 5,259.15 51,28 0,98%

Shanghai Composite -4,36 -0,19 2,233.41%

FTSE 100 6,549.11 +41.46 +0.64%

CAC 40 4,256.02 +33.06 +0.78%

DAX 8,804.44 +80.63 +0.92%

Dow 15,168.01 -133.25 -0.87%

Nasdaq 3,794.01 -21.27 -0.56%

S&P 500 1,698.06 -12.08 -0.71%

(pare/closed(00:00 GMT +02:00)/change, %)

EUR/USD $1,3524 -0,26%

GBP/USD $1,5996 +0,09%

USD/CHF Chf0,9124 +0,24%

USD/JPY Y98,21 -0,46%

EUR/JPY Y132,82 -0,72%

GBP/JPY Y157,08 -0,35%

AUD/USD $0,9531 +0,42%

NZD/USD $0,8396 +0,46%

USD/CAD C$1,0376 +0,21%

08:30 United Kingdom Average earnings ex bonuses, 3 m/y August +1.0% +1.0%

08:30 United Kingdom ILO Unemployment Rate August 7.7% 7.7%

08:30 United Kingdom Average Earnings, 3m/y August +1.1% +1.0%

08:30 United Kingdom Claimant count September -32.6 -24.3

08:30 United Kingdom Claimant Count Rate September 4.2% 4.2%

09:00 Eurozone Trade Balance s.a. August 11.1 12.4

09:00 Eurozone Harmonized CPI September +0.1% +0.5%

09:00 Eurozone Harmonized CPI, Y/Y (Finally) September +1.1% +1.1%

09:00 Eurozone Harmonized CPI ex EFAT, Y/Y September +1.0% +1.0%

09:00 Switzerland Credit Suisse ZEW Survey (Expectations) October 16.3 21.0

12:30 Canada Manufacturing Shipments (MoM) August +1.7% +0.3%

13:00 U.S. Total Net TIC Flows August 56.7

13:00 U.S. Net Long-term TIC Flows August 31.1

14:00 U.S. NAHB Housing Market Index October 58 58

18:00 U.S. Fed's Beige Book October

21:30 U.S. FOMC Member Esther George Speaks