US stock futures rallied and the dollar gained after President Barack Obama announced that the Democratic and Republican leaders of the Senate had reached a deal to raise the nation’s debt ceiling and avert a default.
Republicans and Democrats may vote today on the measure, which would raise the US$14.3 trillion debt ceiling through 2012, cut spending by about US$1 trillion and call for enactment of a law shaving a further US$1.5 trillion from long-term debt by 2021.
Dow Jones Industrial Average futures rose 67 points to 12,260, while S&P 500 futures climbed 17.70 points to 1,306.30, and Nasdaq 100 futures rose 34 points to 2,388.
The dollar rallied from near record lows against the Swiss franc and the yen. The dollar index, which tracks the US currency versus six major currencies, was up 0.2% at 73.87.
