The US House of Representatives has passed a Senate-backed deal to stave off a fiscal cliff of drastic taxation and spending measures. The deal now needs to be signed by the President, Mr Barack Obama after the House voted late last night.

There had been intense pressure for the vote to be passed before financial markets reopened today. Some House Republicans had wanted to amend the bill to add more spending cuts, but dropped this idea.

But participants at the Republicans' meeting said the overwhelming sentiment was a desire to amend the bill and return it to the Senate.

A party aide told Reuters news agency that the members had met last evening to decide a strategy, but the meeting ended without any public comment.