World News: US Election 2016 - Sanders and Clinton locked in dead heat as Trump concedes defeat to Cruz

Democrat Hillary Clinton is locked in a dead heat with Vermont Senator Bernie Sanders in the Iowa presidential nominating contest.

Mrs Clinton, a former Secretary of State and First Lady, has a wafer-thin margin of 49.9% over 49.5% for Mr Sanders, a US Senator from Vermont, with 99% of precincts reporting.

In a statement, her campaign claimed she had won the Democratic Iowa caucus.

But the outcome in three precincts in the state  - Davenport, Des Moines and Ames - was decided by a coin flip, according to the Des Moines Register.

Mr Sanders said the tight contest had given his campaign a "kick-start" and showed the American people that "this is a campaign that can win".

The third Democratic candidate, Martin O'Malley, has suspended his campaign after trailing badly. He gained just 0.6% of Iowa's votes.

On the Republican side in Iowa, Donald Trump has conceded defeat to Texas Senator Ted Cruzin the first-in-the-nation contest for November's US presidential election.

The Hillary for America campaign was counting on its vaunted get-out-the-vote operation to deliver a clear victory and avoid a stinging rerun of her 2008 defeat to now-President Barack Obama.

But Mrs Clinton, who has been dogged by an inquiry into her emails while she was the top US diplomat, put a brave face on Monday night's inconclusive result.

She said she was "breathing a big sigh of relief" and told the crowd: "I am a progressive who gets things done for people."

With the race too close to call, Mr Sanders - a self-described democratic socialist - told cheering supporters: "What Iowa has begun tonight is a political revolution.

"We are going to create an economy that works for working families, not just the billionaire class.

Mrs Clinton - the party establishment favourite - entered the Democratic race as the runaway leader.

But Mr Sanders has electrified youthful crowds with his impassioned rallying cry to reform an economy he says is rigged in favour of the super-rich.

According to opinion polls, Mr Sanders enjoys a healthy double-digit lead over Mrs Clinton in the second nominating contest, next week's New Hampshire primary.

Two consecutive defeats for Mrs Clinton could set off alarms bells within the party about her ability to defeat a Republican opponent.

Mr Sanders looks likely to face an uphill battle in the other primary contests of February and March.

Critics say his vision of a US with universal healthcare and free college tuition is not feasible.

But he reminded fans he had come to Iowa nine months ago with no money, name recognition or political organisation.

The pair will share the spoils of delegates to the party's national convention in July when the presidential nominee is crowned.

Mrs Clinton is projected to walk away with 22 delegates and Mr Sanders with 21.

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