China's economic downturn and weak inflation pose a challenge to the U.S. Federal Reserve as it weighs raising interest rates for the first time in nine years on Thursday.

Analysts say the risks have risen for a slowdown in U.S. growth that might persuade the Fed to hold off from a rate hike for a few more months.

The OECD cut its world economic growth forecasts for 2015 and 2016 on Wednesday, warning of a dramatic slowdown in Brazil and a global outlook clouded by uncertainty over China.

The policy analysis club of 34 advanced economies had already slashed its forecasts just three months ago because of weak U.S. activity.

The head of the German central bank or Bundesbank, Jens Weidmann, said Wednesday the influx of refugees is a challenge for Germany, but also an opportunity given its ageing population. 

"Coping with the influx of refugees will demand a lot from Germany. But immigration also brings with it opportunities," Weidmann told the daily Sueddeutsche Zeitung in an interview. 

Financial markets that have been buffeted by the prospect of the first U.S. interest rate hike in almost a decade are buckling up as the Federal Reserve begins meeting Wednesday to weigh its decision.

An uncommon debate has raged over whether the U.S. central bank should go ahead with a quarter-point increase to the federal funds rate that would nevertheless mark a crucial break with the Fed's crisis stance since 2008.

The EU's top court toughened its stance on "welfare tourism" on Tuesday, in a decision likely to boost British Prime Minister David Cameron's hopes for EU negotiations ahead of a membership referendum.

The European Court of Justice ruled that member states can end benefits to EU citizens, even if they worked for a certain period in the country, expanding on a decision made in November last year.

The Chinese automobile market remains an area with growth potential despite the current slowdown, German top-of-the-range carmaker BMW said on Tuesday. 

"Despite the current development, China still has substantial growth potential," BMW's chief financial officer Friedrich Eichiner told journalists on the sidelines of the IAA motor show. 

China said it is cracking down on thousands of stock accounts linked to illegal trading, in its latest bid to restore order to markets pummeled by a rout that has wiped trillions off valuations in the country since June.

The China Securities Regulatory Commission (CSRC) has so far targeted 3,255 accounts, shutting some and forcing others to trade through legal channels, it said in a statement late Monday.

Malaysia will inject up to $4.6 billion to bolster its stock market and will spend tens of millions of dollars on infrastructure projects to try to stimulate the slowing economy, Prime Minister Najib Razak said Monday.

Najib, who is also finance minister, said up to 20 billion ringgit ($4.6 billion) would be used to reactivate the dormant equity investment firm ValueCap, which was set up in 2002 to invest in undervalued local firms.

The dollar broadly weakened against its Asian peers on Monday, fueled by persistent worries over China's economy ahead of a crucial U.S. interest rate decision later this week.

Nervous traders moved into safer assets, pushing up the Japanese currency to 120.30 yen against the dollar, compared with 120.57 yen Friday in New York.

Three years ago India was the weakling of the emerging markets clan, politically stagnant and struggling to grow -- but as gloom engulfs other developing economies, the subcontinent is enjoying a moment in the sun.

Brazil and Russia lie deep in recession and South Africa is teetering on the brink after demand for raw materials collapsed, while alarm bells have sounded over fears the China juggernaut may be faltering.