The ripple effect saw bond yields bow across Europe. As well as the Bund yield slide, neighbouring Switzerland’s 50-year government bond yield even went negative, meaning that none of its debt now offers buyers any interest.

The ECB “is clearly preparing for a package of policy easing in September,” said analysts at TD Securities, “We look for a dovish press conference now.”

Wall Street was also expected to open higher amid another blizzard of earnings. The S&P 500 and Nasdaq had both hit record highs on Wednesday after reassuring comments from Texas Instruments about global chip demand blunted the impact of weak earnings from Boeing and Caterpillar.

Facebook share were also up around 1 per cent in pre-market trading after it announced forecast-beating revenues after Wednesday’s closing bell.

The social media company’s stock has surged over 56 per cent so far this year, despite warnings on future revenue growth from new data privacy rules and forthcoming privacy-focused product changes.

Asia then managed to overcome some early wobbles to finish higher and with some striking milestones.

Japan’s Nikkei touched a near three-month high, although Australia stole the glory as it ended near a 12-year peak after its central bank chief stressed interest rates could continue to fall.

Chinese blue-chips also added 0.5 per cent in Shanghai. Investors there looked with hope to a meeting between top US and Chinese negotiators next week, even if there are few signs that it will produce real progress in the two countries’ trade war.

“Lower rates are generally, in a traditional, mechanical way, good news for equity prices,” said Jim McCafferty, head of equity research, Asia ex-Japan, at Nomura.

For all the ECB focus, the day’s fireworks had already gone off in Turkey.

The country slashed its main interest rate to 19.75 per cent from 24 per cent in the first rate meeting since President Tayyip Erdogan sacked the former central bank chief for not cutting rates fast or furiously enough.briti

New governor Murat Uysal didn’t waste any time and the lira rose 0.3 per cent in response.

“The CBRT (Turkish central bank) had room for manoeuvre given real rates are at 8 per cent, and decided to front-load some of its expected easing,” said Standard Chartered economist Carla Slim.

“It likely deemed the global market and geopolitical backdrop benign enough to give more weight to domestic issues. The risk is that cutting too much too soon could unnerve markets.”

Back among the major currencies, the dollar was down against the yen at 108.07 and the dollar index, which tracks it against six major currencies, barely budged at 97.757.

Sterling was broadly flat at US$1.2475, after falling for several sessions as market participants feared the looming possibility of a no-deal Brexit under Britain’s new prime minister, Boris Johnson.

“If talks between the UK and EU break down, the pound could see further losses,” said Steven Dooley, currency strategist at Western Union Business Solutions.

In commodities, US crude added 20 US cents to US$56.08 per barrel while Brent crude climbed 15 cents to US$63.33.

The advance came amid Middle East tensions and a big fall in weekly US crude stockpiles, although the gains were curbed by a frail demand outlook and increasing signs of slowing global economic growth.

Spot gold slipped 0.2 per cent to US$1,423.09 an ounce, short of last week’s peak of US$1,452.60.