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Britain's FTSE rallies on U.S. fiscal optimism
December 18, 2012 / 8:14 AM / 5 years ago

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.

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

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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