The Bank of England and European Central Bank rate decisions will highlight the European economic news as American markets will receive initial jobless claims and some Fed-speak. In Canada, markets are preparing for building permits and the Ivey PMI for May.

At 7 a.m. EDT, the Bank of England will make its interest rate announcement. Markets and economists are widely expecting the central bank to hold rates unchanged at 5.00%. In the case of a rate hold, the BOE usually does not release a press statement detailing the decision.

At 7:45 a.m. EDT, the European Central Bank will make its interest rate announcement. Economists and markets are fully priced in for no change to the benchmark interest rate of 4.00% and, consequently, will be paying attention to European Central Bank President Jean-Claude Trichet's press conference at 8:30 a.m. EDT.

At 8:30 a.m. EDT, the U.S. Department of Labor will release initial and continuing jobless claims for the weeks ending May 31 and May 24 respectively. Economists are expecting initial claims to total 375k compared to the previous week's 372k level. Continuing jobless claims are expected to total 3110k compared to the previous week's 3104k level.

Also at 8:30 a.m., Statistics Canada will release April building permits, which economists expect to advance by 0.5% month-over-month after declining 4.5% in March.

At 10 a.m. EDT, Fed Vice-Chairman Donald Kohn will testify before the Senate Banking Committee in Washington, D.C.

Also at 10 a.m. EDT, the Ivey Business School will release its Canadian PMI for May. Economists are expecting an increase to 59.0 compared to the previous month's 57.6 level.

At 10:35 a.m. EDT, the U.S. Energy Information Administration will release natural gas storage for the week ending May 30. The consensus is for a build of 100 bcf compared to the previous week's 87 bcf pickup.

At noon EDT, Philadelphia Fed President Charles Plosser will speak at the Society for Financial Econometrics Inaugural Conference at New York University's Stern School of Business. His speech is titled 'The Importance of Financial Econometrics for Financial Innovation and Financial Stability.' An audience Q&A will follow.

At 1:30 p.m. EDT, U.S. Treasury Undersecretary for International Affairs David H. McCormick will attend a hearing on establishing a multilateral clean technology fund at the House Committee on Financial Services in Washington, D.C.

At 2 p.m. EDT, European Central Bank Council Member Lorenzo Bini-Smaghi will speak at a Rothschild dinner in Villa Miani, Italy.

At 4:30 p.m. EDT, the Fed will release M1 and M2 money supply data for the week ending May 26.

At some point on Thursday, the U.S. International Council of Shopping Centers will release annual chain store sales for May. The consensus is for a 1.8% increase compared to April's 3.5% rise.

7:00 GB Bank of England Interest Rate Decision 5-Jun Exp: 5.00% Prior: 5.00%

7:45 EU European Central Bank Interest Rate Decision 5-Jun Exp: 4.00% Prior: 4.00%

8:30 EU ECB's Trichet to Speak at monthly press conference

8:30 US Initial Jobless Claims 31-May Exp: 375K Prior: 372K

8:30 US Continuing Claims 24-May Exp: 3110K Prior: +3104K

8:30 CA Building Permits (M/M) April Exp: +0.5% Prior: -4.5%

10:00 CA Ivey Purchasing Managers Index May Exp: 59 Prior: 57.6

10:00 US Mortgage Delinquencies Prior: 5.82%

10:00 US Federal Reserve Chairman Kohn testifying on the conditions of banking industry

10:30 US EIA Natural Gas Storage Change 30-May Exp:100 Prior: 87

10:30 CA Commodity Price Index

12:00 US Philadelphia Fed's Plosser Speaks on Financial Stability in NY

13:30 US ICSC Chain Store Sales (Y/Y) May Exp:+ 1.8% Prior: +3.6%

13:30 US TSY McCormick Speaks on Climate Fund

16:30 US M1 and M2

By Erik Kevin Franco and edited by Nancy Girgis