US shutdown talks: White House and Republicans fail to agree deal - by Dan Roberts and Dominic Rushe

US House Speaker John Boehner

White House talks with Republicans failed to reach an agreement to end the budget crisis on Thursday evening, but a marked change in tone from the participants suggested a deal to end the protracted standoff could finally be in sight.

Discussions between Barack Obama and House speaker John Boehner broke up after 90 minutes with no specific agreement, but both sides said discussions would continue to prevent the US defaulting on its debt obligations.

Earlier, Boehner sent stock markets soaring by offering to pass a temporary six-week extension to the US debt limit that the Treasury estimates will be reached on 17 October.

Republicans are also under pressure to lift their refusal to pass a separate spending authorisation, which precipiated a partial shutdown of the government, leading to the lockout of an estimated 800,000 federal workers.

Obama has insisted on at least a temporary reprieve from both threats before he would agree to negotiate over Republican demands to repeal his healthcare reforms and cut spending.

Read more: US shutdown talks: White House and Republicans fail to agree deal | World news | The Guardian