European Central Bank is to meet today at Tallinn, Estonia to decide on its forward guidance

Economic data suggests that the euro zone economy is doing much better than expected, inflation is still not close to their target but close to 2 percent.

Investors will be keeping an eye on the European Central Bank's meeting and news conference later in the day, where policymakers are expected to sketch out their latest plans for the bank's bond-buying stimulus program.

ECB chief Mario Draghi told a parliamentary hearing recently that the 19-nation Eurozone’s economy is improving but it still needs heavy stimulus.

The pan-European Stoxx 600 pared all of its gains to close marginally lower on Wednesday with sectors mixed and major bourses in negative territory. 

European banking stocks led the gains on Wednesday after Santander agreed to buy Banco Popular for one euro. The Spanish lender announced plans to raise 7 billion euros ($7.9 billion) to prop up the troubled Banco Popular. While shares ended under pressure, Santander's chairman told a news conference the takeover would be "good for Spain and good for Europe."

All eyes are on the meeting, as investors around the world await the stimulus programme.

The week although is eventful for other macro events; UK elections in the next three days and Comey’s testimony in front of the Senate Intelligence Committee has the investors on the edge of their seats.