European Stocks Seen Higher on Talk of Fed Move


European equities are set to open up on Thursday, recovering from the previous day's losses, as speculation the Federal Reserve would cut the discount rate helped U.S. stocks claw back from steep losses.

Spread betters in London expect the FTSE 100 index and Germany's DAX to rise as much as 0.8 percent while France's CAC 40 is seen up as much as 0.9 percent higher. 

In a busy day for European company earnings, Swiss engineering giant ABB's third quarter profit beat analysts estimates.

On the macroeconomic front, German business sentiment data, U.S. durable goods orders and a reading on U.S. new home sales will be watched with financial markets already pricing in a 100 percent chance of a cut in U.S. interest rates next week.

Chinese stocks fell 4 percent as annual GDP data failed to dispel expectations of further monetary policy tightening despite a slowdown in growth.