Fiscal cliff hangs over U.S. investors on poll's eve

Nov 05, 2012, 7:46 PM EST

Some of the largest U.S. asset managers and pension funds called on the U.S. Congress to do a deal to avert the fiscal cliff, underlining investors' concern of a damaging political stand-off in the event of a narrow election victory for Barack Obama. Some $600 billion in spending cuts and tax rises are set to take effect on January 1 if changes to the law are not agreed. Such fiscal austerity could push the economy into a recession next year, the Congressional Budget Office and the Federal Reserve have warned. U.S. stocks advanced modestly on Monday in one of the year's quietest trading sessions.