With reassurances that the Fed will keep on easing, markets turn their attention to the European Central Bank Thursday, hoping for a rate cut and anything else that could juice the euro zone economy.
The ECB is widely expected to cut its main refinancing rate, by 0.25 to 0.5 percent. The Fed Wednesday kept its “quantitative easing” or bond buying program in place and added language to its statement, making it clear that it could increase the size of its QE program, as well as pare it back, depending on the job market and inflation. Many market participants believe the Fed’s next move would be to start tapering back the purchases.
Besides the ECB, investors will be watching weekly unemployment claims data, international trade and productivity and costs, all at 8:30 a.m. ET. There are also chain store sales reports for April and dozens of earnings reports, including General Motors, Royal Dutch Shell and Siemens.
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