Equities surge on debt ceiling hopes as Buffett warns of 'mass destruction'

US equity markets have leapt higher in early trading, hauling the FTSE 100 back into the black, on fresh hopes of a resolution to the US fiscal stand-off.

Amid a warning from billionaire Warren Buffett (pictured) that wrangling over the fiscal budget and the debt ceiling resembled a "political weapon of mass destruction", markets climbed on speculation Democrats and Republicans were nearing a deal on the debt ceiling. The S&P 500 rose over 1% at the open to 1,716 points, while the Dow rose by almost 200 points, a gain of 1.3%. The US Federal government shut down has dragged on for over a week so far as a result of the impasse, with the 17 October deadline for raising the debt ceiling now only hours away, but news of a possible deal also...