Britain's FTSE rallies on U.S. fiscal optimism

LONDON Tue Dec 18, 2012 1:43pm IST

A man walks past the London Stock Exchange in the City of London October 27, 2008. REUTERS/Alessia Pierdomenico

A man walks past the London Stock Exchange in the City of London October 27, 2008.

Credit: Reuters/Alessia Pierdomenico

Kishore Pandey, 82, lies on a bed as his daughter, Usha Tiwari, holds him and a priest stands by them (L) at Mukti Bhavan (Salvation House) in Varanasi, in the northern Indian state of Uttar Pradesh, June 19, 2014. REUTERS/Danish Siddiqui

Waiting to die at Salvation House

The city of Varanasi is Hinduism's holiest city and many Hindus believe that dying there and having their remains scattered in the Ganges allows their soul to escape a cycle of death and rebirth.  Slideshow 

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)

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