The Latest: ECB cuts rate, to announce more measures

With investors predicting a bold package of stimulus measures from the European Central Bank later, there is a risk that it fails to meet expectations and that could see the day's stock market gains evaporate and the euro rise.

Michael Hewson, chief market analyst at CMC Markets, cautioned that it's "highly improbable" that ECB President Mario Draghi will deliver everything that many investors expect it to and cautioned that the outcome of the policy meeting "is more than likely to disappoint."

Most economists expect the ECB to make it more expensive for commercial banks to park their cash at the central bank — cutting the so-called deposit rate further into negative territory — and to extend and swell its current 1.1 trillion-euro ($1.2 trillion) government bond-buying program.

James Hughes, chief market analyst at GKFX, says Thursday could be "a pivotal day" for the euro and says that parity between Europe's single currency and the dollar — last seen in late-2002 — is possible soon especially as the Federal Reserve is expected to raise interest rates later this month.

Official figures show that retail sales across the eurozone remain sluggish despite the boon offered to consumers by cheap oil and subdued consumer price gains.

Financial information company Markit says its purchasing managers' index — a broad gauge of activity across the manufacturing and services sector — rose to 54.2 points in November from 53.9 the previous month.