From Dow Jones & Company:

The risk of a partial U.S. government shutdown hitting later this month is decreasing as a deal on spending levels is shifting sentiment. The deal follows spending caps set in May to lift the debt ceiling but does make some concessions to House Republicans. There is still a chance of a breakdown, but analysts are optimistic due to clear progress. The main U.S. stock gauges were mostly gaining, and Washington is also wrestling over a possible $110 billion supplemental spending package.

The Democratic-run Senate and Republican-controlled House of Representatives face a Jan. 19 deadline to make a funding deal. Some agencies and programs have funding extended until Jan. 19, while others are extended until Feb. 2. Lawmakers need the deal to write bills that set funding for agencies, with spending for the current fiscal year at about $1.66 trillion. There’s hope for a tax deal and a partial revival of an expanded child tax credit.



Read more: Government shutdown? Chances are ‘way down’ after spending deal, but ‘not to zero,’ analyst says