Before the bell: Bond selloff sends European futures lower

In European corporate news, Mercedes-Benz MBGn.DE is reportedly planning to cut €800 million in labour costs, the latest sign of cost-cutting efforts sweeping across Europe's auto industry.

In M&A, Schneider Electric SCHN.PA announced a takeover offer for Bulgarian smart-home device maker Shelly Group SLYG.BB for €70 per share.

A bigger than expected rise in operating profit could lift H&M HMb.ST, with shares in the Swedish fashion retailer called around 3% higher. British homebuilder Vistry VTYV.L lowered its annual profit expectations.

European futures pointed lower on Thursday as a global bond selloff gathered pace and stronger-than-expected U.S. business activity data fuelled expectations of further Federal Reserve tightening, just as oil prices firmed above $100 a barrel.

With the risk-off mood weighing on Asian markets and set to extend into Wall Street for a second day, EuroSTOXX50 .STOXX50E, DAX .GDAXI and FTSE .FTSE futures declined by 0.4-0.5%, adding to Wednesday's losses.

Nasdaq NQc1 and S&P 500 ESc1 contracts also fell, with the probability of an October rate hike rising to nearly 71% from above 50% earlier in the week, according to CME’s FedWatch tool.

Chinese blue chips .CSI300 lost 1.5% even as U.S. Treasury Secretary Scott Bessent said the two countries agreed to extend trade truce by two months.