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."