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 Investors were subdued before the two events, both usually big
market movers. Stocks, benchmark bonds and the euro and dollar all
barely budged after an equally cautious day in Asia.
The ECB is expected to flesh out last month's aggressive easing
plans, and forecasts are for non-farm payrolls to rise by more than
200,000 for a fifth straight month. That would bolster the view the
world's largest economy is back on track after a difficult winter.
"The main thing today will be the non-farm payrolls," said Valentijn
van Nieuwenhuijzen, the head of multi-asset funds at ING investment
management."
"(President Mario) Draghi will be doing his best to make the ECB
meeting a non-event, but after all the strong U.S. data this week,
the ADP, ISM, the car sales data, this could be the thing that
finally convinces markets that they can't ignore it anymore."
European stocks inched up 0.3 percent, heading for their third
consecutive day of gains and keeping MSCI's All World index, which
covers 45 countries, flush with Wednesday's latest record high.
The dollar was also up, copper on the London Metal Exchange hit its
highest level since late February, and safe-haven gold was down amid
a lull in tensions in Iraq and Ukraine.
"People were saying, 'What is cheap in the world?' They figured out
the (growth-sensitive) metals were cheap and if things accelerated a
little bit, why not take a position?" said analyst Dominic Schnider
of UBS Wealth Management in Singapore.
DOLLAR, TREASURIES NUDGE HIGHER
The ECB was not the only central bank in action on Thursday.
Sweden's crown fell to a 3-1/2-year low against the euro as its
central bank cut rates more than expected. The Australian dollar
lost ground after the head of the RBA warned the currency may
weaken.
The dollar held firm above a recent eight-week low as benchmark
10-year U.S. treasury yields crept to a new 1 1/2-week high of 2.62
percent.
The euro was also hovering just below a six-week high at $1.3648 as
German Bund yields nosed higher. The euro's strength is becoming a
major thorn in the ECB's side, creating problems for both inflation
and growth.
Early futures prices also pointed to minor gains on Wall Street
later.
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The U.S. jobs data is being released on Thursday because U.S.
markets are closed for Independence Day on Friday, the day the
report is usually released. It is due at 12.30 GMT. The ECB will
release its rate decision at 11.45 GMT; a press conference by Draghi
is scheduled for 12.30 GMT.
Asian equity markets had also seen little activity overnight, with
MSCI's broadest index of Asia-Pacific shares outside Japan ending
steady after briefly touching a new three-year peak.
"If the (payrolls) data shows that the U.S. economy is in good
health, Japanese shares in the auto and technology sector will
likely be bought," said Hikaru Sato, a senior technical analyst at
Daiwa Securities in Tokyo.
OIL SLIPS
In commodities, crude oil extended losses after falling the previous
day on encouraging signs of supply from Libya and Iraq.
Libya's acting prime minister Abdullah al-Thinni said the government
had reached a deal with a rebel leader controlling oil ports to hand
over a final two terminals that should end a blockade.
Iraqi Prime Minister Nuri al-Maliki also boosted supply hopes as he
said parliament could form a new government in its next session
after the first collapsed in discord.
Baghdad can ill afford a long delay as large swathes of the north
and west fall under the control of an al Qaeda splinter group
Brent crude was back below $110.50 for the first time in over
two-weeks while safe-haven gold fell 0.3 percent to $1,323.55 an
ounce as it pulled back from a 3-month high.
(Reporting by Marc Jones, editing by John Stonestreet)
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