America avoids fall over 'fiscal cliff' after budget deal

Global markets have reacted with relief after a last-minute budget deal to increase taxes and delay spending cuts in America was approved.

With a fall over the so-called "fiscal'cliff" avoided, the FTSE 100 in London rose above the 6,000 mark for the first time since July 2011.

ITV News Correspondent Paul Davies reports.

Read more: Why America's budget crisis has been averted, but not solved

Advertisement

Obama hails US budget deal

Barack Obama has hailed a deal to avoid a "fiscal cliff" of stark tax hikes and spending cuts. The US House of Representatives backed the bill by 257 votes to 167.