Before the bell: Europe steadies; chips, software in focus

Meanwhile, U.S. Treasury yields eased from multi-year highs, with the benchmark 10-year yield last at 4.77%, down from Wednesday's near three-year peak of 4.81%.

Nasdaq and S&P 500 futures were little changed.

(Danilo Masoni)

Tech was back in focus after Broadcom AVGO.O forecast strong AI chip sales over the next two years. However, its shares fell in after-hours trading after its fourth-quarter revenue forecast missed expectations. Broadcom's Frankfurt-listed shares were down 2%.

In Europe, Deutsche Telekom DTEGn.DE was in focus following reports that Elliott had built a sizeable stake in the German telecoms operator and opposed a potential merger with its U.S. subsidiary, T-Mobile US TMUS.O.

Also on the European watchlist was Soitec SOIT.PA, up 10% in premarket trading after the chip materials maker raised its outlook on booming demand for photonics products used in AI data centres. Other photonics-related names, such as Aixtron AIXGn.DE, were also called higher.

Software maker SAP SAPG.DE could find support after Snowflake SNOW.N surged more than 20% after raising its full-year product revenue forecast on growing demand for its cloud data platform and AI offerings.

European shares were set for a steady start near one-month lows on Thursday after President Donald Trump signalled the renewed U.S. campaign against Iran would not last long, pushing oil prices and bond yields lower.

Euro STOXX 50, DAX and FTSE futures were up around 0.1% before the cash market open, while Brent crude slipped below $95 a barrel after a recent surge that stoked inflation concerns and fuelled bets of a Fed rate hike in September.