FTSE 100 passes 6,000 on fiscal cliff relief rally but US growth could fall to 1 per cent this quarter

From MindfulMoney :: Mindful Money
January 1, 2013 - 7:00pm

 The FTSE 100 has broken through the 6,000 barrier as part of a global relief rally as the US stops short of pitching over the fiscal cliff. But fund managers are saying that the tax rises that have been agreed will still significantly dampen US growth.For the moment, however, world markets are breathing several deep sighs of relief. Markets were also boosted by strong economic growth figures from China on Wednesday 2 January. Both Houses of Congress have signed up to tax rises for the wealthiest, the continuation of Bush-era tax cuts for the middle classes and the postponement, for two months, of difficult spending cuts though that means more heated arguments are only a few weeks away.   This BBC reports on the nuts and bolts of the deal, while the New York Times details the political horse trading and that fact that many Republicans accepted the compromise thr...

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