KARLSRUHE, Germany - A top European Central Bank official rejected accusations that the bank had exceeded its powers while fighting the financial crisis, telling Germany's supreme court its bond-buying program is only meant to ensure its monetary policy works. The Federal constitutional Court was holding a second day of hearings to weigh allegations that the ECB's plan to purchase government bonds amounted to financing for governments, which is illegal for the central bank. Critics also say it exposes taxpayers to potential losses and threatens the ECB's independence.

BERLIN - A top European Central Bank official has warned that a German court judgment against the bank's program to buy the bonds of troubled economies could reignite concerns over the future of the euro.

European equities retreated Thursday after the ECB and Bank of England kept interest rates on hold, and as traders also took positions ahead of major US data, dealers said. In afternoon trade, London's FTSE 100 index of top companies shed 0.44 percent to 6,391.23 points, Frankfurt's DAX 30 fell 0.29 percent to 8,172.57 points, and in Paris the CAC 40 was down 0.35 percent at 3,839.06 points.

LONDON - Stock markets in Europe recovered their poise Thursday despite a big retreat earlier in Asia earlier and a glitch that temporarily affected several major exchanges. The gains were muted ahead of the European Central Bank's monthly policy decision and another raft of U.S. economic data in the run-up to Friday's nonfarm payrolls report for May, which often sets the market tone for a week or two after its release.