A roundup of trading on major world markets:
NEW YORK - US stock markets closed solidly in the red as politicians in Washington remained deadlocked over a deal to reopen the government and avoid default on its debts.
As the markets closed on Tuesday, the Dow Jones Industrial Average was down 134.79 points (0.88 per cent) at 15,166.47.
The broader S&P 500 fell 12.06 (0.71 per cent) to 1,698.08, and the Nasdaq Composite lost 21.26 (0.56 per cent) at 3,794.01.
LONDON - European stock markets rose as it appeared US politicians would reach a deal to reopen government services and raise the country's debt ceiling and avoid defaulting.
Frankfurt's DAX 30 climbed 0.92 per cent on Tuesday to set a new record close at 8,804.44 points and the CAC 40 in Paris rose 0.78 per cent to 4,256.02 points.
London's benchmark FTSE 100 index added 0.64 per cent to 6,549.11 points, as investors also reacted to news also that British inflation remained steady in September.
Milan added 0.43 per cent and Madrid jumped 1.13 per cent.
The euro slid to $US1.3496 from $US1.3559.
HONG KONG - Asian markets broadly rose as US lawmakers were thought to be nearing a budget deal to reopen the government and raise the country's borrowing limit to avoid a catastrophic default.
Tokyo rose 0.26 per cent, or 36.80 points, to 14,441.54, Sydney closed 0.98 per cent, or 51.2 points, higher at 5,259.1 and Seoul ended 1.02 per cent higher, adding 20.69 points to 2,040.96. Hong Kong ended up 0.51 per cent.
However, Shanghai eased 0.19 per cent, slipping 4.36 points to 2,233.41.
Jakarta, Kuala Lumpur, Manila and Singapore were closed for public holidays.WELLINGTON - The NZX 50 Index rose 13.758 points, or 0.3 per cent, to 4747.925.