Global markets rally as US agrees eleventh hour deal

Global markets climbed overnight on news the US has agreed a solution to its debt crisis, which will ease fears of the country losing its AAA-credit rating.

The Democrats and Republicans struck an eleventh hour deal to raise the country's debt ceiling by at least $2.1bn. However, this still needs to be given the green light by Congress before the 2 August deadline.

Last week the Dow Jones posted its worst weekly losses in over a year, while ten-year treasuries surged, as yields plunged to their lowest levels since last November.

The FTSE 100 was up 1.06% or 61 points to 5,876, at 8.40am.

Meanwhile, the German Dax was up 1.32% to 7,253 and the French Cac rose 1.1% to 3,713.

Meanwhile the US dollar rose against the yen and the Swiss franc after the debt ceiling announcement.

The currency closed 0.84% up against the yen to 77.54 and rose 0.77% against the Swiss franc to 0.79.

Brent Crude climbed 2.08% to $119 per barrel, however gold slid 0.89% to $1,614.