EUROPEAN CENTRAL BANK

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.

Market signals of deflation, at least in Europe, are becoming harder to ignore. All eyes are on the European Central Bank.

As the euro dips, here's a look at the winners and losers.

Swiss National Bank announced it would impose an interest rate of -0.25 percent on the portion of so-called "sight deposits."

The Fed promised in 2012 to keep interest rates "close to zero" until after its asset purchase scheme ended and the economy strengthened.

The Dow and S&P 500 Index fell on Thursday after ECB President Mario Draghi warned falling oil prices would have mixed impact on the eurozone.

Expectations of more stimulus from other global central banks was also lifting markets.