President Putin called for immediate talks on Ukraine, although his spokesman said this did not mean Moscow endorsed rebel calls for independence.
The ECB meeting on Thursday is the prime event for markets seeking clarity on the bank's response to recovery, inflation and the sluggish pace of reform.
Draghi said it would be "helpful for the overall stance of policy" if fiscal policy could play a greater role alongside the ECB's monetary policy.
Iceland cut its ash warning level for aviation to orange from red on Sunday.
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Peter Thal Larsen, Asia editor at Reuters Breakingviews, discusses China's debt level and highlights that as most of the debt is held domestically, it is easier for the authorities to sort it out.
Timothy Ash, head of emerging markets research at Standard Bank, says the West and markets are "sleep-walking through the Ukraine crisis" and ignoring the ongoing "full-scale war".
Sean Corrigan, chief investment strategist at Diapason Commodities Management, says gold looks "vulnerable" with a tight trading range.