The Dow ended over 500 points lower on Wednesday but overnight in Asia losses were more muted as US futures recovered some poise. As a result European stocks are expected to open higher.
The DAX is seen higher by 102 points, the FTSE100 is called higher by 76 points and the CAC 40 is expected higher by 47 points.
Wednesday’s session began with big gains for European stocks but fears over the health of the euro zone banking system resurfaced before the US open and stocks on Wall Street had another bad session with the Dow finishing the session down 519 points.
Societe Generale was one of the biggest losers in yesterday’s session amid rumors that a downgrade of French government debt would have a major impact on banking giant.
All three credit ratings agencies came out to deny any plans to lower France’s AAA rating and Societe Generale asked the French market regulator to investigate the market rumors.
In an interview with CNBCfollowing the US market close Societe Generale CEO Frederic Oudea told CNBC he was not afraid of any outstanding issue with sovereign debt exposure.
Oudea told CNBC’s Maria Bartiromo that rumors surrounding a downgrade of French debt “are very strange” and dismissed the rumors surrounding the bank as “absolute rubbish”. CNBC’s Ross Westgate will report live from Paris on Thursday.
Gold hit a record high of 1,800 dollars an ounce on Wednesday as investors fled equities but in Asian trade gains for the Australian dollar where taken as a sign that investors are not completely risk averse.
The Chicago Mercantile Exchange has raised margin calls on gold following the huge gains of recent days for the precious metal.
Italy will remain in focus after Silvio Berlusconi promised an emergency deficit decree aimed at cutting spending in order to receive support from the European Central Bank for Italian bonds.
Unions in Italy are threatening big protests against the measures. CNBC’s Carolin Schober will report live on Berlusconi’s plan to cut spending from Rome.
Helping sentiment following the US close where numbers from Cisco .
Shares rose sharply after the tech giant beat lowered Wall Street forecasts. Chris Dedicot, the CEO of Cisco EMEA will join Squawk Box Europe first on Thursday.