ECB Expectation
Nearly all analysts polled by Reuters expect rates to remain unchanged on Thursday and most predict that they have already bottomed out. Yet, they also expect the ECB's 80 billion euro monthly asset buys to be extended before the end of the year as they are now set to expire next March, too soon for inflation to rebound.
With the case for a steady hand weakened by dimming inflation prospects, some analysts expect a six-month extension of asset buys to be announce on Thursday.
Economists surveyed by Bloomberg predict the ECB will lower its 2017 growth forecast from 1.7 percent and keep all other projections -- including an estimate for inflation of 1.6 percent in 2018 -- unchanged.
BOJ's Nakaso dismisses idea of buying foreign bonds to affect forex
Bank of Japan Deputy Governor Hiroshi Nakaso on Thursday dismissed the possibility of the central bank buying foreign bonds for the purpose of weakening the yen.
When asked about calls from some academics such as premier Shinzo Abe's adviser Koichi Hamada for the BOJ to buy foreign bonds, Nakaso said he couldn't comment because he did not know in what context such calls are being made.
"The BOJ conducts monetary policy for the domestic purpose of hitting its inflation target, not for influencing exchange rates," he told reporters.
Bank of Japan Deputy Governor Hiroshi Nakaso said the central bank would not rule out deepening negative interest rates or any other easing steps needed to achieve its price target.
Nakaso said the BOJ's comprehensive assessment of its policy effects to take place later this month will look at ways to accelerate achievement of its 2 percent inflation target. It will not discuss ways to withdraw its ultra-loose monetary policy.
China imports unexpectedly climb in August, export slump eases
China logged stronger-than-expected trade data in August as imports unexpectedly rose for the first time in nearly two years and the slump in exports abated, Reuters reported on Thursday, citing official data.
Exports in the world's second-largest economy fell 2.8 percent in dollar terms on-year following July's 4.4 percent drop and beating Reuters expectations for a 4 percent decline.
Imports unexpectedly rose 1.5 percent on-year, reversing a 12.5 percent fall in July and coming in better than Reuters' estimated 4.9 percent fall. August's increase was the first on-year rise in imports in dollar-denominated terms since October 2014.
Despite the encouraging data, sluggish global demand will still weigh on China's export and manufacturing outlook, economists at ANZ said in a note.
Oil extends gains after data shows huge stock draw
Oil prices extended gains by more than 1.5 percent on Thursday after industry data showed what might be the largest weekly drawdown in crude stocks in over three decades. U.S. crude stocks surprisingly plunged by 12.1 million barrels last week, data from the American Petroleum Institute showed after market settlement on Wednesday, compared with expectations for an increase of around 200,000 barrels. [API/S]
If official data released from the U.S. government later on Thursday confirms the draw, it would be the largest one-week decline since April 1985.
London Brent crude for November delivery had climbed 75 cents to $48.73 a barrel by 0400 GMT, after settling up 72 cents on Wednesday. NYMEX crude for October delivery was up 79 cents at $46.29, having ended the previous session up 67 cents.
Reference: Reuters, Bloomberg,CNBC
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