Economic calendar: Canadian retail sales, API report on oil stocks

• European markets set for higher opening

• JPY spikes after BoJ widens YCC band

• Housing market data from US, retail sales from Canada

European index futures point to a lower opening of the cash session on the Old Continent today. Bank of Japan's decision to widen the band around target 10-year yield from 0.25% to 0.50%, essentially delivering a rate hike of up to 25 bp. JPY spiked on the news while equity markets plunged. While index futures managed to recover some losses, USDJPY continues to trade near daily lows.

Day ahead includes some second tier data that may influence some short-term market moves, given thinner pre-Christmas volatility. Those include jobs data from Poland, housing market data from the United States or retail sales report from Canada. Oil traders will look for hints in weekly API report on oil inventories.

9:00 am GMT - Poland, data pack for November.

• Wage growth. Expected: 13.3% YoY. Previous: 13.0% YoY

• Employment growth. Expected: 2.3% YoY. Previous: 2.4% YoY

• Industrial production. Expected: 2.2% YoY. Previous: 6.8% YoY

1:00 pm GMT - Hungarian National Bank rate decision

1:30 pm GMT - US, housing market data for November.

• Building permits. Expected: 1480k. Previous: 1512k

• Housing starts. Expected: 1400k. Previous: 1425k

1:30 pm GMT - Canada, retail sales for October.

• Headline. Expected: 1.4% MoM. Previous: -0.5% MoM

• Ex-auto. Expected: 1.5% MoM. Previous: -0.7% MoM

9:40 pm GMT - API report on US oil inventories. Expected: -0.2 mb. Previous: +7.82 mb

Central bankers' speeches

• 9:00 am GMT - ECB Kazimir