Reports say the Democrats will retain control of the US Senate, after earlier reports said Republicans would keep the House of Representatives.

Having said no to taxes for months, Republicans now are saying maybe in the face of public disgust over a deadlock in the US Congress.

Efforts to avoid an unprecedented US debt default suffered a new blow on Thursday when fiscally hardline Republicans blocked a budget deficit plan.

The US standoff over debt plans offers little hope of compromise, increasing the threat of a ratings downgrade that could sow chaos in global markets.