US stocks rise as budget deadlock nears end

US stocks rallied strongly on Wednesday as the budget impasse approached an end. The S&P 500 rose 1.4 percent after the Senate put together a proposal that would end the government shutdown and raise the debt ceiling.

Meanwhile, US economic growth remained “modest to moderate”, according to the Federal Reserve's Beige Book on Wednesday. In the latest Fed survey, four districts reported slower economic growth while the remaining eight saw steady expansion despite “uncertainty” from the US fiscal deadlock.

However, another report on Wednesday showed that confidence among US homebuilders weakened in October. The National Association of Home Builders/Wells Fargo housing market index fell to 55 this month from 57 in September.

Meanwhile, the positive dataflow on the UK economy continued on Wednesday. The number of people claiming jobless benefits fell by 41,700 in September, its biggest fall in more than 16 years.