Markets breathed a huge sigh of relief Wednesday that U.S. lawmakers agreed on a budget deal that will stop hundreds of billions of dollars in automatic tax increases and spending cuts that risked plunging the world's biggest economy into recession.
Financial markets remained volatile Thursday, a day after concerns over the U.S. fiscal situation combined with renewed worries over the European economy to hammer stocks.
"Investors are trading with a sense of relief after lawmakers in Washington agreed on a compromise to avoid the fiscal cliff that has been the dominant theme in equity markets since the Presidential elections back in November," said Mike McCudden, head of derivatives at stockbroker Interactive Investor.
"Volatility will likely continue to be the name of the game going forwards as markets lurch from one crisis to the next and investors will continue to trade with extreme caution," said Mike McCudden, head of derivatives at Interactive Investor.
