You are here: Home - Investing -

Markets up after 11th hour fiscal cliff deal

0
Written by:
02/01/2013
Asian markets received a New Year's boost as the US House of Representatives passed a last minute deal to prevent the US falling over the fiscal cliff.

The financial compromise Bill was passed 257 – 167 after a late night session in the House of Representatives.

President Barack Obama hailed the deal to stave off a “fiscal cliff” of drastic taxation and spending measures as “just one step in the broader effort to strengthen the economy”.

“I will sign a law that raises taxes on the wealthiest 2% of Americans… while preventing a middle-class tax hike,” Obama said.

Despite the last minute agreement, analysts warned many budget issues remain unresolved before another fiscal deadline in around two months including the need to raise the federal borrowing limit.

However, news a deal had been reached provided a New Year’s boost for markets. Hong Kong’s Hang Seng index gained 2.1%, while South Korea’s Kospi added 1.7% and Australia’s ASX 200 rose 1.2%.

Uncertainty over whether the US government could reach a deal to avert the fiscal cliff had weighed on markets at the end of 2012, with the FTSE 100 down 0.47% on the last day of the year.

However, the Dow Jones rose 1.28% on the last trading day of 2012 as hopes grew some kind of deal could be signed.

Despite a subdued end to 2012, the FTSE 100 still finished the year up 6%, compared to a fall of 5.6% in 2011.

Related Posts

Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Autumn Statement: Everything you need to know at a glance

Yesterday Chancellor Jeremy Hunt made his first fiscal statement in the role, outlining a range of tax measure...

End of Help to Buy: 10 alternatives for first-time buyers

The deadline for Help to Buy Equity Loan applications passed on 31 October. If you’re a first-time buyer who...

Moving to an energy prepayment meter: Everything you need to know

As households struggle with the soaring cost of energy, tens of thousands of billpayers are expected to move o...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week