The White House and Republicans moved towards a temporary agreement on a short-term extension of the US debt limit, raising tentative hopes of averting a potential default by the world’s largest economy.
Amid mounting global pressure for a deal, Barack Obama said he would consider signing a six-week extension of US borrowings offered by the Republican leadership in Congress. The accord offered a chance of defusing the issue a week before the deadline to lift the debt limit.
Financial markets responded favourably to the signs of a thaw in Washington, with the S&P 500 up 1.7 per cent at midday and set for its best one-day rise since the start of the year.