The IMF is warning the country must avoid tax increases and spending cuts that could send it back into recession, says the risks to the economy haven't intensified.

I would say that first of all the US economic recovery remains tepid and downside risks haven't intensified. They are of two types: one is clearly external and comes from the current European situation and its potential deterioration.  And the second is domestic and is really closely associated with No.1 the debts ceiling and No.2 the fiscal cliff.

That's Christine Lagarde, the head of IMF. Let's take a look at the markets.

It's a good night despite those warnings from the IMF. The Dow closed 72 points higher. The NASDAQ gained 25 and the S&P 500 also rose. In London, the FTSE finished 47 points in the black.

Checking commodity prices. 

West Texas Crude is trading at 87 US dollars and 72 cents a barrel. Tapis Crude is trading at 104 US dollars and 88 cents a barrel. And gold is at 1617 US dollars an ounce. The Australian dollar is buying 103 US cents, 82 euro cents and 65 pence sterling.