Prices of world shares and commodities rose Thursday, suggesting recovery in the global economy. Major central banks are expected to keep their policies loose to support growth. As no changes seemed to be forthcoming on the Federal Reserve's stimulus program, the European Central Bank and the Bank of England are expected to stick to their growth-friendly policies.

Market analyst Alastair McCraig supported the view. "I'd be very surprised if the Bank of England or the ECB did anything as far as radical changes are concerned," he told Reuters. Central banks in the region are likely to continue support as manufacturing data in the euro zone revealed activity picking up in July, the first in two years. This was also the case in China, where its official report on the country's purchasing managers index (PMI) showed growth in its factory sector.

Gekko Markets sales trader Anita Paluch said things are looking up for Europe. "On the manufacturing front, China delivered quite a mixed message. But in the European corner things are looking better, with signs of improvement in the beleaguered region," she said.