In the US session Retail Sales, Industrial Production and PPI figures were released. Sales at U.S. retailers rose less than forecast in November, representing a pause in spending after robust gains in the previous two months. The 0.1 percent advance followed a revised 0.6 percent increase in the prior month that was smaller than initially reported, Commerce Department data showed Wednesday. The median forecast in a Bloomberg survey called for a 0.3 percent gain.

The Producer Price Index for final demand increased 0.4 percent in November, seasonally  adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices were unchanged in October and advanced 0.3 percent in September. On an unadjusted basis, the final demand index climbed 1.3 percent for the 12 months ended November 2016, the largest rise since moving up 1.3 percent for the 12 months ended November 2014.

Separate report showed that production at factories, which make up 75 percent of all output, fell 0.1 percent, a Federal Reserve report showed Wednesday. The median forecast in a Bloomberg survey called for a 0.2 percent drop. Total industrial output, which includes mines and utilities, decreased 0.4 percent, the biggest decline since March, as utility use slowed with warmer-than-usual temperatures.

However the focus of the session was on Fed interest rate decision, Federal Reserve officials raised interest rates for the first time this year and forecast a steeper path for borrowing costs in 2017, saying inflation expectations have increased “considerably” and suggesting the labor market is tightening. The Board of Governors of the Federal Reserve System voted unanimously to raise the interest rate paid on required and excess reserve balances to 0.75 percent, effective December 15, 2016.

The central bank said monetary policy supports “some further strengthening in labor market conditions and a return to 2 percent inflation,” adding the word “some” in an indication that officials see less room for improvement in the job outlook. The word “strengthening” also replaced “improvement.”

Tomorrow's session will bring French and German Manufacturing and Services PMI figures. No significant change is expected. In the US session CPI, Unemployment Claims, Philly Fed and Empire State Manufacturing Index data will be published. Analysts predict 0.2% incline in CPI and no significant change in Unemployment Claims. Philly Fed and Empire State Manufacturing Index are also expected to rise to 9.1 and 3.2 points respectively.

Figures to watch:

French Flash Manufacturing PMI/French Flash Services PMI (Thursday 9:00)

German Flash Manufacturing PMI/German Flash Services PMI (Thursday 9:30)

CPI (Thursday 14:30)

Unemployment Claims (Thursday 14:30)

Philly Fed Manufacturing Index (Thursday 14:30)

Empire State Manufacturing Index (Thursday 14:30)