fiscal policy

The year started off well for US investors as its major stock markets hit fresh highs in the first half.

Progress in the fiscal cliff talks being held in Washington has given Wall Street a lift as the threat of a possible recession is averted.

The US economy grew 2.7% in the third quarter of the year, a significant upwards revision from the first reading of the data.

Wall Street opened higher today as optimism from early-stage talks in Congress about tackling the US fiscal cliff spread to markets worldwide.

Global markets rallied today after fiscal cliff talks between President Barack Obama and Congressional leaders stepped up a notch over the weekend.

The S&P 500 has opened down 1.4% and the Dow Jones Industrial Average has shed 200 points in the first trading session after President Obama's election victory.

US FISCAL CLIFF

The manager of the world's largest bond fund has pointed to the US, UK, Spain, France, Japan and Greece as serial debt addicts whose government borrowing is spiralling out of control.

The Japanese government is being forced to consider suspending state spending as it emerged it could run out of cash within a month.

The International Monetary Fund has trimmed its US GDP forecasts and warned the nation's economic recovery remains fragile.