World markets greeted 2013 on a high note Wednesday after the U.S. Congress and President Barack Obama reached a last-minute deal to avert a financial crisis that analysts say could have sent the United States into a recession. But experts say a potential crisis in the world’s largest economy has yet to be resolved.
Late Tuesday, the U.S. House of Representatives approved a partial deal to avert more than $500 billion in spending cuts and tax increases. In the United States, key stock markets soared, with the Dow Jones Industrial Average ending the day 2 percent higher, the Standard & Poor’s 500 climbing 2.5 percent and the Nasdaq Composite Index advancing 3 percent. Stocks also surged in Europe and Asia.
But analysts caution that investor optimism will be short-lived, as the so-called fiscal cliff agreement between President Obama and Congress delays for two months decisions about large federal spending cuts.