Wall Street indices close higher as Obama-Boehner talks intensify

<p>Wall Street was buoyed at close of play last night as fiscal talks between the president and John Boehner intensified.</p>

The main Wall Street stock benchmarks closed higher in trading last night (December 11th) as talks between the president and the House of Representatives speaker intensified.

Barack Obama and John Boehner have been negotiating how to avert the fiscal cliff – a parcel of tax rises and government spending cuts due to hit the world's largest economy simultaneously in the new year.

In an interview with ABC News, the president said he believes the Republicans will yield to his wishes to raise tax rates imposed on the wealthiest American citizens – which is one of the biggest arguments on the table at present as a means of cushioning the fiscal cliff blow, which would see ordinary Americans lumped with a $2,200 (£1,369) annual increase in their outgoings.

"I'm pretty confident that Republicans would not hold middle-class taxes hostage to trying to protect tax cuts for high-income individuals," the president stated.

At close of play last night, the Dow Jones rose by 0.6 per cent to 13248.4 points, while the Nasdaq surged by more than one per cent to 3022.3 points.

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