The FTSE 100 soars on the positive news.
The FTSE 100 (UKX) rose 90 points as the markets opened this morning, following the announcement that the House of Representatives has passed the fiscal cliff bill in the US.
The Republicans and Democrats came to a compromise at the last minute over the deal, which will impose tax rises on the country's wealthiest, sparing the working- and middle-classes. On Tuesday night, Congress voted in favour of the bill with a majority vote of 257 against 167.
If no agreement could have been reached between the two political parties by 1 January -- the fiscal cliff being midnight on 31 December 2012 -- then every American taxpayer faced an automatic rise, totalling $536bn. Additionally, spending cuts from domestic and military programmes of $109bn would likely have caused markets around the world to be affected if the issue had not been resolved, not to mention a slow economic recovery.
As it is, the Footsie now finds itself ever closer to the 6,000 mark following its 90-point/1.5% climb, while around the world markets have also responded positively, with Hong Kong's Hang Seng index up 2.1% and Australia's ASX 200 increasing 1.2% at the time of writing.
The FTSE 100 contains many strong dividend-paying investment opportunities, and "8 Popular Dividend Shares Held By Britain's Super Investor" reveals the favourite income stocks held by Neil Woodford, who has thrashed the FTSE 100 during the 15 years to 2011 by favouring steady and reliable blue chips. Just click here to download the free report today.
> Sam does not own shares in any company mentioned.