U.S. markets are in the green after Europe’s central bank move. The euro dives to a low unseen since 2003.
Market expectations are sky-high for the European Central Bank to unveil large-scale quantitative easing.
The surprise move follows Denmark's rate cut and the Swiss National Bank's decision to drop its cap on the Swiss currency against the euro.
After a bouncy day, U.S. markets settled in the green. Investors are looking to Brussels for a stimulus signal.
Financial markets are already starting to pay the price of central bank wavering and lack of cooperation with higher volatility.
Mervyn King said he was concerned about a persistent weakness in global economic demand, six years on from the depths of the financial crisis.
The French leader's comments reinforced expectations that the ECB will follow other major central banks into quantitative easing.
Iraqi Oil Minister Adel Abdel Mehdi said on Sunday Iraq pumped 4 million barrels per day (bpd) of oil in December, its highest ever.
The euro fell from nearly $1.40 in May to $1.15 last Friday, its slide gathering pace as expectations mount that the ECB will launch QE.
Swiss National Bank scrapped a three-year-old cap on the franc, sending the safe-haven currency soaring through the 1.20 per euro limit.
Commodities came under pressure after the World Bank cut its forecasts for global growth, reinforcing worries of a gloomy economic outlook.
Over the weekend, European Central Bank members debated "quantitative easing" in the EU.
The dollar hit a new nine-year high and stocks worldwide headed for their first back-to-back rise of the year on Thursday.
The trade deficit shrank in November to less than $40 billion, providing a boost to growth as Americans spent less on imported oil.
Deflation in the eurozone is likely the final push the ECB needs to pull the trigger on quantitative easing, despite Berlin's resistance.
It could take years for world leaders to recover from a mass deflation.