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)
- U.S. war veteran released by North Korea returns home |
- South Korea to make announcement on air zone; expansion is anticipated |
- South Korea expands air defense zone to partially overlap China's |
- Pro-Europe protesters gather for rally in Kiev
- Pennsylvania newlyweds "just wanted to murder someone together:" police
Nelson Mandela: 1918 - 2013
Reuters looks at the life and times of Nelson Mandela, an icon of peace and reconciliation who came to embody the struggle for justice around the world. Video