FTSE100 ends day modestly higher on hopes of US deal

At 11th hour, U.S. edges away from brink of debt crisis

WASHINGTON | Wed Oct 16, 2013 8:13pm BST
(Reuters) - U.S. Senate leaders announced a deal on Wednesday to end a political crisis that partially shut down the federal government and brought the world's biggest economy close to a debt default that economists said threatened financial calamity.

U.S. stocks surged, nearing an all-time high, on news of the deal, which must still be approved by vote in the Senate and the House of Representatives. But trading volumes remained low, underscoring how the political brinkmanship in Washington has unnerved Wall Street.

The deal, which has the backing of President Obama, would fund the government until 15 January and lift the borrowing limit until 7 February.