THE LOCAL SHAREMAREKTS SEEN ITS SECOND BIGGEST RISE ALL YEAR WITH MORE THAN 90 PER CENT OF THE ASX 200 MAKING GAINS ON HOPES OF A BREAKTHROUGH IN THE DEADLOCK IN WASHINGTON OVER RAISING AMERICA'S DEBT CEILING AS NEGOTIATIONS CONTINUE BETWEEN REPUBLICANS AND DEMOCRATS. BUT MICHAEL MCCARTHY SAYS THE OPTIMISM MAY NOT LAST.

TAKING A LOOK AT THE FIGURES... THE ALL ORDS AND THE ASX 200 FINISHED UP AROUND 1.6%. TAKING A LOOK ACROSS THE REGION AND IT IS ALSO GAINS WITH THE NIKKEI UP BY 1.2%. ON WALL STREET THE DOW JUMPED 2.2%, THE S AND P 500 ADDED 2%. THE VOLATILITY INDEX IN CHICAGO KNOWN AS THE VIX... WHICH TRACKS STRESS LEVELS OF INVESTORS PLUNGED TO THE LEVELS SEEN BEFORE THE PARTIAL GOVERNMENT SHUTDOWN IN THE US. TAKING A LOOK AT COMMODITIES AND OVERNIGHT THE SPOT GOLD PRICE DROPPED SHARPLY AND IT REMAINS BELOW 13-HUNDRED-US AN OUNCE AND THE AUSTRALIAN DOLLAR HAS BEEN PICKING UP ACROSS MOST MAJOR CURRENCIES AND IS CRUISING UP TOWARDS 95 US CENTS.