US stocks fall as Obama begins fiscal cliff talks

<p>US stocks have retreated as Barack Obama holds talks on managing the fiscal cliff.</p>

The major US stock benchmarks have lost ground this afternoon (November 16th) as Barack Obama commences talks with Congress over how the world's largest economy is to avert disaster and the fiscal cliff.

Held at the White House, the president – who was re-elected last week for a further four years in office – is calling for higher earners in the US to pay more taxes.

The fiscal cliff would see a series of levies implemented during the George W Bush era expire at the same time as a number of across-the-board reductions to domestic and military expenditure.

This is due to hit the world's largest economy because Congress has so far failed to reach a deal on deficit reduction after a stand-off over the US debt ceiling in mid-2011.

Mr Obama stated: "My hope is this is going to be the beginning of a fruitful process that we're able to come to agreement."

At 16:50 GMT, the Dow Jones was 0.5 per cent lower to a value of 12477.6 and the Nasdaq retreated by 0.8 per cent to 2812.7 points.

Find out about the Dow Jones and CFD trading at City Index.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.