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Fiscal cliff concerns

THE initial market euphoria on the back of the US Congress deal faded as investors looked to additional negotiations.

European shares saw significant gains of up to 2.2pc after Congress approved the deal that stops the automatic implementation of $600bn (¤456bn) cuts and tax increases.

US stocks recorded their biggest single day gain in over a year and Asian stocks hit a five-month high as a last-minute deal ended the US "fiscal cliff" crisis that threatened a US recession and roiled world financial markets.

But later on, the euro fell against the dollar in Asia as investor confidence gave way to concerns about future budgetary rows in Washington.