Wall Street is looking to the European Central Bank's much-anticipated policy decision on Thursday, with the ECB viewed as likely to cut the 18-nation bloc's economic outlook and further its monetary easing.
"Perhaps the most watched and potentially market-moving event this week is in Europe, as the ECB is scheduled to meet. The ECB is widely expected to at least cut their three policy rates, and more policy options are considered likely. The exact form of these actions is unknown, but asset purchases seem unlikely. If the ECB cuts its deposit rate, it will be the first major central bank to charge banks for depositing money with them," noted Bill Stone, chief investment strategist, at PNC Financial Services Group.
"We need them to do something, that's an imperative. Signaling they will keep rates low for an extended period, that should start every sentence," said Art Hogan, chief market strategist at Wunderlich Securities.