The European Central Bank hinted of more monetary policy easing and provided markets some breathing space. ECB President Mario Draghi hinted strongly that more easing could be coming within months and probably as soon as March. Fading growth, continuing decline in oil prices and inflation prospects will force the central bank to review its policy stance in March.

Importantly, People’s Bank of China continued with its liquidity injection programme on Thursday, adding 400 bn Yuan in order to ease the liquidity situation in the Chinese economy.

Earlier during the week, markets were roiled further on collapsing oil prices, which plummeted to 2003 lows, and slowdown fears in China. China’s GDP growth in Q4 2015 came in at 6.8% YoY (vs 6.9% YoY in Q3), lowest since 2009. Moreover, annual GDP growth rate in 2015 was 6.9%, the lowest in the past 25 years.