News / Economy

Global Markets Higher as US Congress Averts Financial Crisis

Traders work on the floor at the New York Stock Exchange in New York, January 2, 2013.
Traders work on the floor at the New York Stock Exchange in New York, January 2, 2013.
VOA News
World markets are opening the new year on a high note, after the U.S. Congress reached a deal to avert an early 2013 financial crisis that threatened to send the world's largest economy into recession.

In the U.S., key stock markets all jumped about 2 percent in Wednesday trading. Stocks also surged in Europe, with markets in London, Frankfurt and Paris all ending the day up more than 2 percent.

Earlier, Asian markets welcomed the U.S. legislative action in the first trading of the new year, with Hong Kong ending up 2.9 percent, Sydney gaining 1.2 percent, and Seoul adding 1.7 percent. Markets in Japan and China were closed for public holidays.

U.S. FISCAL DEAL FACTS

  • Raises $600 billion over 10 years through higher taxes on wealthier Americans
  • Delays by two months billions of dollars in mandatory defense and domestic spending cuts
  • Extends farm bill provisions to prevent a spike in milk prices
  • Blocks cuts to payments for doctors who treat elderly Americans
  • Extends unemployment benefits to 2 million people for one year
  • Cancels a $900 cost-of-living raise for members of Congress
  • Extends child tax credits, and those for college tuition and renewable energy
Major concerns loom

Late Tuesday, the House of Representatives reached a deal to avoid $500 billion in spending cuts and tax increases, endings weeks of quarreling that had overshadowed global markets. While the deal will provide short-term certainty, analysts say it will not do much to address investor concerns about the future since decisions on large spending cuts were delayed two months.

British financial strategist David Buik of the Cantor Index said he is concerned the U.S. reached its $16.4-trillion borrowing limit on Monday and will also have to decide in the coming weeks whether to increase the debt ceiling. Without the ability to borrow more money, the U.S. would face an unprecedented circumstance - running out of money to avoid defaulting on some of its financial obligations.

"We have avoided it [the 'fiscal cliff'], but it is a fudged deal and I think anybody who thinks that it's anything else probably deludes themselves," he said. "I think we are going to hit problems again come February when President Obama presents his budget for 2014.  Clearly one of the issues in that is going to be the debt ceiling and the budget deficit, which clearly at $16.4 trillion is wholly unacceptable.''

You May Like

EU Court Fines Poland for Hosting CIA 'Black Sites'

Ruling is first time a court has acknowledged suspects were held and tortured at the sites, under US program launched following the 9/11 terrorist attacks More

Migrant Issues Close to Home Spur Groups to Take Action

Groups placing water, food in the desert, or aiding detainees after release, have one common goal: no more deaths of migrants crossing illegally into the US More

Video At AIDS Conference, Prevention Pill Stirs Excitement

Truveda shows promise, spurring debate over access and other approaches More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Treatment for Childhood Epilepsy Heats up Medical Marijuana Debatei
X
Shelley Schlender
July 24, 2014 6:43 PM
In the United States, marijuana is classed as an illegal drug by the federal government. But nearly half the states have legalized it, to some degree. Proponents say some strains of marijuana might have exceptional health benefits, for treating pain or inflammation in chronic conditions such as cancer, multiple sclerosis and epilepsy. Shelley Schlender reports on a strain of medical marijuana developed in Colorado that is reputed to reduce seizures in childhood epilepsy
Video

Video Treatment for Childhood Epilepsy Heats up Medical Marijuana Debate

In the United States, marijuana is classed as an illegal drug by the federal government. But nearly half the states have legalized it, to some degree. Proponents say some strains of marijuana might have exceptional health benefits, for treating pain or inflammation in chronic conditions such as cancer, multiple sclerosis and epilepsy. Shelley Schlender reports on a strain of medical marijuana developed in Colorado that is reputed to reduce seizures in childhood epilepsy
Video

Video Airbus Adds Metal 3D Printed Parts to New Jets

By the end of this year, European aircraft manufacturing consortium Airbus plans to deliver the first of its new, extra-wide-body passenger jets, the A350-XWB. Among other technological innovations, the new plane will also incorporate metal parts made in a 3-D printer. VOA's George Putic has more.
Video

Video Death Toll From Israel-Gaza Conflict Surpasses 700

Gaza officials say a shelling hit a compound housing a United Nations-run school in the Gaza Strip, killing more than a dozen people, during an Israeli offensive in the area. Heavy fighting between the Israeli military and Hamas militants continued on Thursday, pushing up the death toll. So far, more than 730 Palestinians and 35 Israelis have been killed in the conflict. VOA's Scott Bobb has the latest from Jerusalem.
Video

Video AIDS Conference Welcomes Exciting Developments in HIV Treatment, Prevention

Significant strides have been made in recent years toward the treatment and prevention of HIV, the virus that causes AIDS. This year, at the International AIDS Conference, the AIDS community welcomed progress on a new pill that may prevent transmission of the deadly virus. VOA’s Anita Powell reports from Melbourne, Australia.
Video

Video Israel Targets Gaza Supply Tunnels

The Israeli military has launched a ground operation in Gaza to destroy the myriad tunnels that may have been used to smuggle weapons to Hamas. VOA's Zlatica Hoke reports that could mean more hardship for the people of Gaza, who obtain some of their essential supplies through these underground passages
Video

Video Researchers Target Low-Cost Avatar Technology

Scientists at the University of Southern California Institute for Creative Technologies say 3-dimensional representations could revolutionize social media. Elizabeth Lee has more from Los Angeles.
Video

Video IAEA: Iran Turns its Enriched Uranium Into Less Harmful Form

Iran has converted its stockpiles of enriched uranium into a less dangerous form that is more difficult to use for nuclear weapons, according to the United Nations’ Atomic Energy Agency. The move complies with an interim deal reached with Western powers on Iran's nuclear program last year, in exchange for easing of sanctions. Henry Ridgwell reports for VOA from London.
Video

Video In Cambodia, HIV Diagnosis Brings Deadly Shame

Although HIV/AIDS is now a treatable condition, a positive diagnosis is still a life altering experience. In Cambodia, people living with HIV are often disowned by friends, family and the community. This humiliation can be unbearable. We bring you one Cambodian woman’s struggle to overcome a life tragedy and her own HIV positive diagnosis.

AppleAndroid

World Currencies

EUR
USD
0.7305
JPY
USD
101.53
GBP
USD
0.5830
CAD
USD
1.0656
INR
USD
60.075

Rates may not be current.