FTSE surges as US markets jump on budget deal hopes

The FTSE 100 has surged in afternoon trading - rising over 100 points - as hopes mount US politicians will agree a deal on the country's sprawling budget deficit.

Following a positive morning session, the FTSE 100 was up 103 points at 6,441 shortly after the US opened, erasing losses seen earlier in the week. Over in the US, both the Dow and the S&P 500 are also higher, both climbing 1.3% by 3pm UK time as debt deal talks reportedly turn more positive. UK investors were initially buoyed by the Bank of England's decision to leave rates and QE unchanged, the Monetary Policy Committee's inaction suggesting the recovery which has been taking hold has not been derailed. The latest from the US has since lifted shares further, with House Republican...