US hopes for debt ceiling deal as deadline looms

Hopes for heading off a default and ending a US federal government shutdown grew today after encouraging comments from the congressional leaders at the centre of the discussions.

The stock market turned positive on the optimistic predictions of Senate Majority Leader Harry Reid for the Democrats and Senate Republican leader Mitch McConnell for the Republicans.

President Barack Obama postponed a meeting with the congressional leaders planned for today to allow their discussions to continue uninterrupted.

ITV News economics editor Richard Edgar reports:

Read our Q&A on the US debt ceiling here

See an explanation of key US debt crisis terms


Senate agree US debt bill

The US Senate has passed a bill to raise the debt ceiling and avoid a potential default. It will now be sent to the House of Representatives for a final vote. President Obama has said he will sign the bill "immediately" after the House vote.