Britain's FTSE rallies on U.S. fiscal optimism
LONDON (Reuters) - Britain's top shares rose on Tuesday, recovering after falls in the previous session, on signs of progress in negotiations to avoid a "fiscal cliff" of spending cuts and tax rises that threaten the U.S. economy.
The FTSE 100 .FTSE was up 13.77 points, or 0.2 percent, at 5,925.92 by 0805 GMT, erasing Monday's 0.2-percent drop.
Investors became more optimistic that a U.S. budget deal will be struck on Monday night after President Barack Obama made a counter-offer to Republicans that included a major change in position on tax hikes for the wealthy.
"Now that a deal looks likely to be done, a strong end to the year for equities is certainly on the cards," said Craig Erlam, market analyst at Alpari (UK), who reckons a break above the psychologically important 6,000 level is within reach before year-end.
(Reporting by Tricia Wright; Editing by Toni Vorobyova)
- Tweet this
- Share this
- Digg this
- China building South China Sea island big enough for airstrip - report
- Obama to be chief guest at Republic Day celebrations
- Pakistani family sentenced to death over "honour killing" outside court
- China's rate-cut likely to hurt banks, curb new loans to small borrowers
- Long "to do" list for Modi as clock ticks on reform
Prime Minister Narendra Modi has a long list of pro-growth measures to implement over the next four months, but time may have already run out to breathe enough life into the economy to meet the tough 2014/15 fiscal deficit target without cuts. Article