US shutdown: Markets rally as deal edges closer

US President Barack Obama visits Chicago, Illinois, USA

The Republicans have said the White House must delay President Barack Obama’s flagship healthcare scheme by a year Photo: EPA
 Stocks rallied in the US as the White House and the Republicans edged closer to a crucial breakthrough to prevent America crashing through its $16.7 trillion (£10.5 trillion) borrowing limit.

“What we want to do is to offer the President today the ability to move a temporary increase in the debt ceiling,” Republican House leader John Boehner said on Thursday. The deal would involve a temporary extension of the debt limit to November 22 but no backdown on unlocking the budget standoff that has closed large parts of the government.

The White House said on Thursday night that Barack Obama had a “good” meeting with Republicans but that no way forward has yet been found.

Breaching its borrowing limit would put the US at serious risk of defaulting and likely plunge the world back into recession.

The Republicans have said the White House must delay Mr Obama’s flagship healthcare scheme by a year before they will agree to permanently raise the debt ceiling, or a new stop-gap budget.

London’s benchmark index, the FTSE 100, closed up 92.6 points, or 1.5pc, to 6,430, while in America, the Dow Jones Industrial Average climbed 2.2pc to 15,126.07. The S&P 500 rose 2.2pc and the Nasdaq jumped 2.3pc.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s