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World Markets Around the World Are Getting Smoked – Dow Falls Below 15,000

Markets across Europe just closed at their lowest levels of the day.  The London FTSE 100 fell 2.1 percent, the French CAC 40 fell 1.9, the German DAX lost 1.2%, the Spanish IBEX 35  retreated 0.9% and the Italian FTSE MIB fell 1.0%.

Business Insider: European Central Bank report causes market rebound

At least one euro-zone watcher thinks Europe's end-of-day market rebound may have been caused by the European Central Bank's recent financial stability report.

IMF needs more money. Europe daily economic round-up

Cash calls, rhetoric and continued stable markets.
Europe daily economicEnlarge
British Prime Minister David Cameron and his Italian counterpart Mario Monti at Downing Street today (DANIEL SORABJI/Getty Images)

The big European news of the day came from IMF headquarters in Washington. The IMF announced it had begun discussions with members about raising an additional $500 billion for the fund. The IMF believes it needs $1 trillion on hand, according to its statement.

"Based on staff's estimate of global potential financing needs of about $1 trillion in the coming years, the Fund would aim to raise up to $500 billion in additional lending resources. This total includes the recent European commitment of about $200 billion in increased Fund resources."

This led to the quote of the day (courtesy Daily Telegraph) from the IMF's Olivier Blanchard:

"Post the 2008-09 crisis, the world economy is pregnant with multiple equilibria—self-fulfilling outcomes of pessimism or optimism, with major macroeconomic implications."

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European economic daily news round-up

At market close: bonds sell, stocks up, inflation down

Yesterday's late breaking news that Standard & Poor's was downgrading the European Financial Stability Fund from AAA in line with its earlier downgrade of France hardly made a ripple in today's bond action.

The EFSF, once promoted as one of the main tools for preventing the spread of the debt crisis to the euro zone's bigger economies, held an auction of short term bonds today and sold 1.5 billion euros ($1.9 billion) worth of them.

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