Relief that US lawmakers have approved a deal to avoid a fiscal crunch saw share prices soar on Wall Street and around Europe as stock markets reopened for their first day of trading of the new year.
The long-awaited deal was not as far-reaching as markets had wanted, but investors do believe the threat to growth in the world’s largest economy has been removed for now, though they continue to worry about further political showdowns on the US budget in coming months.
There were also sharp rises in commodities such as oil and copper.
The dollar was down. It traditionally rises when markets sense risk and falls when tensions reduce.
Hopes that stronger US growth will help the global economy had earlier pushed up shares in Asia and Australia.
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