US default averted: Markets higher on news that political squabbles are over

Republican leader John Boehner has agreed to take up the Senate's plan to avert a US default, according to Robert Costa of the National Review. That will allow it to pass with Democrat votes.

Stocks are now roaring. The Dow Jones Industrial Average is up nearly 200 points, while the Nasdaq and S&P are up more than a percentage point each.

European markets are also enjoying the news, with the FTSE 100, DAX, CAC40 and STOXX600 all higher, reversing session losses.

While one House Republican aide has already denied the reports, another Republican has said that he believes the Senate will pass the agreement to the House.

Ishaq Siddiqi of ETX Capital says that there is still more to do, with details still to be worked out. Siddiqi says that "this could all just be more complicated and structured temporary fixes, another kicking the can down the road exercise."