EUROPEAN CENTRAL BANK

European markets fell Friday as investors were not encouraged by the rate cuts announced by central banks.

Asian markets fell Friday as central bank measures in Europe and China could not allay investor concerns about the intensifying debt crisis looming over the euro zone and the worsening global economic downturn.

To some extent, monetary easing has been accommodated because of stable-to-lower inflationary pressures.

The European Central Bank, in a widely anticipated move aimed at limiting the number of euro zone nations falling into recession, on Thursday cut its main interest rate to a historic low of 0.75 percent and cut its overnight deposit and lending rates by 0.25 percentage points each, to 0 percent and 1.5 percent, respectively.

U.S. stock index futures point to a slightly lower opening Thursday ahead of a crucial European Central Bank meeting in Frankfurt where a cut in interest rates is likely to be announced.

European markets fell Thursday as investors remained watchful ahead of a meeting of the European Central Bank in Frankfurt where the bank will take a decision on interest rates.

Oil prices remained near $87 a barrel during Asian trading hours Thursday as investors were awaiting the key monetary decisions from the European Central Bank (ECB) and Bank of England.

European markets fell Wednesday, but investors continued to expect that the central banks would coordinate to announce stimulus measures to regain the growth momentum.

Asian markets rose Wednesday as investors continued to be hopeful that central banks all over the world would soon announce stimulus measures to tackle the weakening global economy.

Asian stock markets advanced Tuesday as weak economic reports from around the world boosted hopes for stimulus measures from major central banks globally.

Asian shares inched up on Tuesday as manufacturing data around the world highlighted the drag on growth from the protracted euro zone debt crisis, raising expectations for the Federal Reserve to take further steps to underpin the fragile economy.

Unemployment in the euro zone rose to a new record high in May, while manufacturing activities fell for the 11th consecutive month in June. The numbers increase the likelihood the European Central Bank will cut its key interest rate when its governing council meets Thursday.

Disappointed by the lack of aggressive action by the U.S. Federal Reserve during the meeting of its powerful rate-setting committee last week, and expecting little more than rehashed promises from the leaders of Europe this week, pessimistic market-watchers are turning to once again guessing when the clock atop the Eurozone time-bomb will finally run to 0.

European leaders established Friday a set of measures to address the euro zone debt crisis, including an agreement to allow some rescue funds to be sent directly to struggling banks instead of adding to the public debt of reeling economies.

An eye-catching illustration included in a report by BNP Paribas Exane explains why the Continent's leader seem unable to solve the ever-worsening eurozone crisis: in spite of being ostensibly committed to the same goals, top policy-makers disagree on the more aggressive policies most experts believe are needed. It's almost like they're on different planets.

Central banks are reaching the limit of their ability to boost economic growth and the potential for harmful side effects of more extraordinary monetary easing is growing, the Bank for International Settlements warned.

As European leaders prepare for talks later this week regarding the euro zone's economic mess, Spain officially petitioned Monday for up to ?100 billion ($125 billion) in loans to rescue its banking sector.

Due to health issues, neither Greece's new prime minister, Antonis Samaras, nor the country's new finance minister, Vassilis Rapanos, will attend the European Union summit in Brussels scheduled for Thursday and Friday.

The market sentiment is likely to remain subdued in the coming week as increasing expectations of a further global slowdown and economic headwinds from the euro zone will continue to weigh.

The European Central Bank said Friday it was easing the collateral rules on certain asset-backed securities currently pledged by banks as backing for ECB loans. Specifically, the bank will accept lower-quality securities as collateral for loans made to banks without demanding higher cash collateral, as had been the case in the past.

European markets fell Friday as concerns about the economic slowdown were revived after data from the euro zone was disappointing and 15 global banks were downgraded by Moody's Investor Service.