Sign warning of US shutdown
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Investors more optimistic as US budget talks continue

11 October 2013 Last updated at 12:04 BST

Talks continued into the night in Washington as the Obama administration and Republicans tried to break the US budget deadlock.

Global markets were rattled by fears that the US would be left unable to pay its bills next week.

Stocks soared on the news that the Republicans were offering a temporary deal to raise the so-called debt ceiling - America's borrowing limit.

Mariko Oi reports from New York.