An IMF report in preparation for the G20 meeting says that recent financial market developments pose a major downside risk to the global economy. A prolonged period of risk aversion would hit growth in the advanced economies and spill over to other G20 economies. Urgent action is needed to restore confidence and address fiscal sustainability, the IMF says.

Double-dip, anyone?

The market seems to be ignoring the report. trading now at 1.2300.