A stock sell-off, rising trade tension with China, slower global growth and verbal pressure from the White House are unlikely to dent the U.S. Federal Reserve's rate hike plans in an economy performing in line with the central bank's forecasts.
The U.S. Federal Reserve raised interest rates on Wednesday and left intact its plans to steadily tighten monetary policy, as it forecast that the country's economy would enjoy at least three more years of growth.
Investors are focused on how the U.S. central bank characterizes its monetary policy as borrowing costs return to more normal levels amid an ongoing economic expansion.
Asian shares inched back from one-year peaks Monday as a rally in Chinese stocks helped offset news of Japan’s economic growth slowing last quarter.
A weaker dollar also helped buy back the commodity after six straight days of declines.
The European Central Bank, already in the midst of a massive quantitative easing program, kept monetary policy unchanged Thursday.
Lee Ju-yeol threw the full weight of the bank behind a structural reform effort, but did not mention quantitative easing, which it is under pressure to provide.
The economy grew at a disappointing 0.5 percent pace, the weakest since the first quarter of 2014, due to slower growth in China and low energy prices.
Japan has been trying to drive its currency down in order to make its exports cheaper and strengthen corporate profits earned abroad.
Investors also will be looking at the European Central Bank for its next move on its bond-buying program.
Lending to eurozone companies and households grew at its fastest pace since late 2011 in February.
The European Central Bank surprised financial markets Thursday morning by dropping its main refinancing rate to zero from 0.05 percent.
Despite February's encouraging data, consumer inflation is expected to remain mild in coming months.
Facing the growing risk of a deflationary spiral, the central bank looks set to cut its deposit rate even further at its policy meeting Thursday.
The drop in stock markets and the rise in the dollar are acting like a brake on the U.S. economic recovery, Dallas Federal Reserve President Robert Kaplan said.
"The markets are clearly starting to price-in a sharp slowdown in the world economy," a chief strategist at Mizuho Asset Management said.