Market update: Show me the money! US votes on debt ceiling today

The S&P 500 Index reached a new five-year high yesterday (+0.4%; Dow Jones +0.5%; Nasdaq +0.3%) buoyed by solid quarterly earnings; Travelers, DuPont, and Verizon Communications all rose following their results; approximately 62% of the S&P 500 companies that have reported thus far have surpassed consensus earnings expectations. Macroeconomic news failed to dampen the mood; US existing home sales dipped 1% in December to a seasonally-adjusted annual rate of 4.94 million, coming in below expectations. In bond markets, the yield on Portugal's benchmark 10-year government bond fell below 6% on news that the country may soon be borrowing money on international markets again, something it has not done since it was bailed out in 2011. The UK’s AAA credit rating may have been further put at risk, however, as news revealed Britain was forced to borrow more than expected last month (a budget deficit of £15.4bn).

European equity markets are in mildly positive territory this morning (FTSE 100 +0.2%; FTSE Eurofirst 300 +0.04%) helped by results from drugmaker Novartis (+2.5%) and consumer goods firm Unilever (+2.7%). The former expects sales to grow in the mid-single digits from 2014, while the latter beat forecasts boosted by double-digit sales growth in emerging markets. Eyes will be on the US later today when the US House of Representatives is scheduled to vote on whether to temporarily extend the US debt ceiling.