The new managing director of the International Monetary Fund has told the US to resolve its debt ceiling "immediately" or risk "serious spillovers to the rest of the world".
Fitch has downgraded Greece to CCC status, one notch above default, due to growing concerns private investors do not want to participate in any bailout of the country.
The IMF has urged the US government to raise its debt ceiling to avoid "global repercussions" for financial markets and a debt "shock".
The executive board of the International Monetary Fund (IMF) has chosen French finance minister Christine Lagarde as its new director.
The FTSE 100 jumped 1.5% this morning, reversing the losses of yesterday afternoon's session.
The International Monetary Fund has cut its forecast for US growth after unexpected economic weakness and European woes.
Fears of a Greek default continued to impact markets despite a deal between the European Union and the IMF being struck yesterday.
The International Monetary Fund (IMF) has shortlisted French finance minister Christine Lagarde and governor of the bank of Mexico Agustin Carstens for the top job as managing director.
The contest to lead the IMF has been thrown open after surprise candidate Stanley Fisher came forward to challenge Christine Lagarde and Agustin Carstens.