Tuesday, November 20, 2012

FTSE bounces back on U.S. fiscal talk optimism

LONDON (Reuters) - Britain's top shares rose on Monday, recovering after last week's steep falls, on optimism for a deal in Washington to avoid imminent contractionary spending cuts and tax rises.

On Friday, leaders of the U.S. Senate and House said they would be flexible in efforts to settle fiscal policy differences, fuelling a late rally on Wall Street.

Over the weekend, leading U.S. lawmakers also expressed confidence that a deal would be reached to avert the $600 billion "fiscal cliff".

The FTSE 100 index was up 46.65 points, or 0.8 percent, at 5,652.24 by 0808 GMT, having dropped 1.3 percent on Friday, taking its weekly losses to 2.8 percent - the steepest since May.

Economically-sensitive commodity stocks and banks spearheaded the rebound on Monday.

(Reporting by Tricia Wright; Editing by Atul Prakash)

Source: http://news.yahoo.com/ftse-bounces-back-u-fiscal-talk-optimism-081800061--finance.html


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