Stock markets in Europe trod higher Thursday ahead of an eagerly-awaited monetary policy decision by the European Central Bank.

Frankfurt and Paris both rose 0.2 percent ahead of the interest rate call due at 1145 GMT, while London flatlined on news of steady retail sales for September.

ECB chief Mario Draghi is likely to prep markets for an extension of a huge monetary stimulus programme after investors were rattled by talk that massive bond purchases may be drying up.

Policymakers are not however expected to make changes to the ECB's record low interest rates, cheap loans to banks or 80-billion-euro per month asset-buying programme.

But markets will be watching Draghi's news conference for signs of the bank's next moves.

"We do not expect any action in today's meeting," said FXTM analyst Hussein Sayed.

"Draghi... will be faced with questions related to a recent unofficial report indicating tapering asset purchases."

Markets also won some support from the previous day's jump in world oil prices, while investors judged Hillary Clinton to have won the final presidential debate with Donald Trump.

Crude futures rallied Wednesday on news of a heavy decline for commercial US oil inventories, fanning hopes about demand in the world's top consumer.

The oil market has risen sharply since OPEC last month agreed to cut output in a bid to address a global glut.

"A shock drop in US crude supplies... continues to underpin both the latest rally in oil prices and demand for risk assets" like equities, said Lee Wild, head of equity strategy at stockbroker Interactive Investor.

"The third and last US presidential debate overnight also looked to give stock market favourite Hilary Clinton a clear path to the White House next month.

"Now, focus shifts to the ECB and Draghi, who is widely tipped to sit on his hands in terms of action this meeting. Crucial will be comments made on future policy."

- Mexican peso strengthens -

In forex trade, the Mexican peso rose against the dollar after the final US presidential debate between market favourite Clinton and her Republican opponent Trump.

Trump has repeatedly said he will tear up a free-trade agreement with Mexico, build a wall between the two countries and remove illegal immigrants, initially hitting the peso on fears for the country's economy.

But the peso has rallied in recent weeks as Trump has fallen further behind in opinion polls following a series of campaign blunders and outbursts.

In late morning London trade, the dollar bought 18.5158 pesos, down from 18.6227 late Wednesday.

"With 19 days remaining to the US presidential election, the republican nominee Donald Trump... failed to score points against his opponent Hilary Clinton in the third and final debate -- at least, this is what the Mexican currency had declared," added Sayed at FXTM.

- Key figures at 1045 GMT -

London - FTSE 100: UNCHANGED at 7,021.80 points

Frankfurt - DAX 30: UP 0.2 percent at 10,671

Paris - CAC 40: UP 0.2 percent at 4,531.90

EURO STOXX 50: UP 0.4 percent at 3,067.40

Tokyo - Nikkei 225: UP 1.4 percent at 17,235.50 (close)

Hong Kong - Hang Seng: UP 0.3 percent at 23,374.40 (close)

Shanghai - Composite: FLAT at 3,084.46 (close)

New York - Dow: UP 0.2 percent at 18,202.62 (close)

Euro/dollar: DOWN at $1.0972 from $1.0973 Wednesday

Dollar/yen: UP at 103.67 yen from 103.42 yen

Pound/dollar: DOWN at $1.2261 from $1.2283 

Euro/pound: UNCHANGED at 98.93 pence

Oil - West Texas Intermediate: DOWN 55 cents at $51.05 per barrel

Oil - Brent North Sea: DOWN 46 cents at $52.21

Source: AFP