MORNING BID EUROPE-BoE hike still seen a way off

* A look at the day ahead from European Economics and Politics Editor Mark John and EMEA Markets Editor Mike Dolan. The views expressed are their own.

LONDON, Jan 14 (Reuters) - The Bank of England is expected once again to sit on its hands and keep rates on hold amid a slowdown in wage growth at home, a renewed plunge in global oil prices and concerns about China's stock market volatility. The only suspense seems to be whether its committee will vote 9-0 or 8-1 in favour of doing nothing. All eyes on lone hawk Ian McCafferty.

Separately the ECB releases the minutes of the December rate meeting where it cut rates and extended its asset-buying but did far less than markets had been expecting. With (Other OTC: WWTH - news) any luck the minutes will tell some of the inside story of the meeting at which Mario Draghi may have lost some of his shine and give clues to his thinking in months to come.

Elsewhere in the eurozone, the data highlight is full-year Germany GDP due at 0900 GMT, forecast to grow at 1.6 percent, with a preliminary estimate for Q4 too. The BDI industry body said on Wednesday it expected Europe's biggest economy to grow by almost 2 two percent in 2016 but also warned of uncertainties ahead. Separately we have Spain holding its first bond auction since last month's inconclusive elections.

MARKETS AT 0745 GMT

As Brent cracks $30, the S&P 500 lunges 2.5 percent and the ViX screams back above 25 pct, increasingly anxious global investors are now starting to look at worst-case scenarios and the evaporation of confidence as real possibilities. What's for sure is that the extreme bearish case is being consider more closely, whether RBS (LSE: RBS.L - news) 's 'sell everything' note this week or perennial 'Ice Age' gloom from SocGen (Paris: FR0000130809 - news) 's Albert who again talked of a 75 percent drawdown in U.S (Other OTC: UBGXF - news) . stocks over the coming cycle and a Fed funds rate of minus 5 percent! There is a fear that all sectors are now just feeding off each other. And the drop in core bond yields again this week, especially U.S. Treasuries, shows how it is all coming full circle as the oil price drop and equity market disruption is seeing Fed rate hike expectations scaled back. With Fed officials starting to row back the 'four hikes in 2016' idea, 10-year US Treasury yields dropped back as low as 2.04 pct and the 5-year/5-year breakevens capturing U.S. inflation expectations has broken back below 2.0 pct after dropping more than 20bp this year. Euro zone equivalents are down to 1.61 pct.

With commodities doing what they are doing, deflation/disinflation/low-flation fears are back on the front-burner. Expect the message from both the Bank of England and the ECB to tilt decidedly dove-ish. Sterling is down almost 6 pct against the dollar over the past month. Overnight in Asia, the reverberations from Wall St's dive were felt strongly initially, although Shanghai ended 2 pct higher eventually. Tokyo closed down 2.7 pct however, and Seoul was down 0.8 pct. Despite the bombing in Jakarta, Indonesian stocks were down only 0.5 pct. Wall St futures point to some rebound later as Brent has recaptured $30 for now, but Q4 earnings now kick in and JPMorgan and Intel (Swiss: INTC.SW - news) report later. Overall, U.S. Q4 earnings are forecast to fall about 4 pct over the last quarter. Eurostocks are expected to open down about 1 pct. Euro/dollar holds steady about $1.0855. Canadian dollar hit its lowest level since 2003 and sterling near a 5-1/2 year low ahead of the BoE. London copper flat at $4,392.50 a tonne after falling to its lowest since May 2009.

Upcoming events/data/ themes for market reports on Thursday:

- European corp events: Alstom (Paris: FR0010220475 - news) , Casino sales; Burberry, Richemont, ASOS (LSE: ASC.L - news) , Jupiter Fund Management, Ashmore trading updates

- Italy Nov industrial output

- Poland rate decision

- Hungarian CPI

- ECB policy minutes

- Bank of England policy decision/minutes

- US Q4 earnings: JPM, Intel

- Euro group meets in Brussels

- Chile rate decision (Editing by Sonya Hepinstall)