Growth in China has also been slowing and past year hit its lowest level in three decades, with a further lowering expected for 2019. The currency is headed for its worst weekly decline - 1.5 percent - in over a year.
The European Central Bank presented a whopping set of monetary policy initiatives Thursday that sent economists and analysts on Twitter into a tailspin.
While the timing of the lunar new year made it hard to draw a true signal from the China data noise, the scale was alarming, especially when coupled with sombre new data from Germany and Norway.
The ECB also significantly reduced its forecast for inflation in an indication that its target of around 2 percent for the area-regarded as sign of a steadily growing economy-is further away than ever. Japan's Nikkei. closed 2 percent lower.
The euro took a big hit yesterday after the ECB pushed back the timing of its first post-crisis interest rate hike to 2020, cut its economic forecasts and launched a new round of cheap bank loans. On Wednesday it cut its growth forecast for the euro zone to 1 percent from the prediction of 1.8 percent which it made just last November.
In early trade, London, Paris and Frankfurt each fell 0.7 percent. "We were not expecting something so clear, so soon, and markets were not either, so bond yields are likely to stay low for longer". Meanwhile, Italian sovereign 2-year bond yields dropped to their lowest level since May 2018.
Investors will be scouring United States payrolls data for February due out later in the day, with analysts uncertain how much payback there might be for January's outsized jump.
English Premier League Report: Manchester City v Watford, 9 March 2019
Manchester City's Raheem Sterling scores their second goal during their Premier League match with Watford at Etihad Stadium in Manchester March 9, 2019.
US stocks slumped with the dollar after a report showed American hiring was the weakest in more than a year while wage gains were the fastest of the expansion.
"Strong non-farm payrolls results and further positive developments in U.S".
Y is hanging near a 3-month high hit in Thursday's session, while Euro holding close to a 21-month low Vs US after the European Central Bank postponed an interest rate hike until Y 2020.
"There is reason to argue that the European Central Bank would need to keep rates lower than beyond the guidance date because if you look at their inflation forecasts out to 2021, you would need some form of accommodation to reach these levels of growth", said ING senior rates strategist Benjamin Schroeder.
Spot gold rose 0.6 percent to $1,292.52 per ounce as of 1305 GMT, while US gold futures gained 0.5 percent to $1,292.90.
USA crude was last down 35 cents at $56.31 a barrel, while Brent crude fell 49 cents to $65.81.