Aust stocks close higher

Local market lifts after US passes debt ceiling deal, agrees to reopen government.

The Australian share market closed higher after the United States Congress passed a bill to raise its debt ceiling and reopen its government, hours before deadline.

At the 1615 AEDT official market close, the benchmark S&P/ASX200 index rose 0.38% to 5,283.1 points, while the broader All Ordinaries index added 0.33% to 5,281.9 points.

The plan extends US Treasury's borrowing authority until February 7 and funds the government until January 15.

IG analyst Chris Weston said markets are already thinking about the next round of negotiations in the new year.

"It makes so much more sense for the Republicans to now start thinking about the mid-term elections and try to win some much needed PR," Mr Weston said.

"Using the threat of a government shutdown or even default just doesn’t work for them, so why would they try it again when in theory it could see the US public lose even more patience with them?"

Mr Weston said now the fiscal drama appears to be priced into assets, investors can go back to considering how global data affects the US Federal Reserve's policy settings.

Strong figures from the US September non-farm payrolls report could set the scene for more tapering talk, he said. 

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