US stocks open higher on US budget talk hopes

<p>US stocks have opened higher on hopes the president will strike a deal with Congress.</p>

Investors in US stocks have regained some of their confidence today (November 19th) as budget talks commence.

This advance follows the rally at the tail end of trading last week amid signs freshly re-elected president Barack Obama and leaders of the Congress were making progress in their work to agree on a budget deal by the end of the year.

The world's largest economy faces a so-called fiscal cliff of tax rises and spending cuts that are due to hit the nation simultaneously.

According to Reuters, analysts say this could slash as much as five percentage points from the economy hurting both the North American superpower and the global recovery.

Recent sessions have been dominated by the uncertainty surrounding the fiscal cliff and the US could slip back into recession next year if Obama and Congress fail to reach a consensus.

At 16:10 GMT the Dow Jones rose by 1.2 per cent to an index value of 12748 points and its neighbour the Nasdaq was up by 1.6 per cent to 2899.3 points.

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