It is likely to be a subdued start for equity markets in the UK as investors sit on their hands ahead of the pivotal European Central Bank (ECB) meeting this afternoon. Though the ECB is widely expected to unleash a host of new measures to battle deflationary pressures and boost growth across the single-currency region, risk appetite is likely to be kept in check given the potential for policymakers to disappoint. City sources predict the FTSE 100 will open just a few points higher than yesterday's close of 6,818.63, which was the index's lowest close since May 23rd."After this week's weak inflation numbers, market expectations of the ECB have likely risen, which we believe raises the bar for the ECB to impress the market with a package of measures," said Analyst Khrishnamoorthy Sooben from Barclays."While weak inflation prints increase the probability of quantitative easing (QE) somewhat, we still think the ECB will prefer to wait before embarking on QE and instead focus on rate cuts and credit easing tools in today's meeting."While the ECB will undoubtedly garner the most attention today, the Bank of England will also be watched as it reports its own monetary policy decision, though analysts expect no change from policymakers just yet. The Bank Rate is forecast to be held at 0.5% with the size of the asset purchase programme unchanged at £375bn.Meanwhile, jobless claims data from the States will be analysed as markets gear up for the all-important US employment report tomorrow, which has the potential to spark some volatility across global financial markets. Jobless claims are expected to rise to 310,000 in the week ended May 31st, from 300,000 the week before which was the second-lowest reading since the financial crisis ended.Stocks to watchSmith & Nephew is likely to be in focus today as M&A speculation continues to surround the medical devices manufacturer. US group Medtronic has become the latest party rumoured to be interested in the UK firm and is reportedly in the early stages of preparing an offer.Lloyds Banking Group said that it is to sell a portfolio of UK commercial real estate loans to Promontoria Holding for £352m in cash. The sale to Promontoria, which is an affiliate of private investment firm Cerberus Global Investors, is part of Lloyds' continued "non-core run-off portfolio asset reduction programme", the company said.Johnson Matthey, which makes catalytic converters for cars, reported higher sales and profits and hiked its dividend but warned that changes in a deal with a supplier and currency volatility would hit growth in 2014/15.The numbers of passengers flying with budget airline easyJet rose 7.9% in May compared to the same month last year. Passenger statistics from the FTSE 100 company showed load factor, the proportion of flying planes filled with passengers, was up 1.3 percentage points from 88.1% to 89.4%.UK residential property developer Bellway said demand for new homes remains robust, buoyed by growing consumer confidence and a strong supply of mortgages. The FTSE-250 firm took an average of 177 reservations per week in the period from February 1st to May 31st, an increase of 11% from the same period last year as the strong housing market underpins demand.BC