Stock index futures pointed to a strong rebound on Wall Street on Thursday, with futures for the S&P 500 up 2.5 percent, Dow Jones futures up 2 percent and Nasdaq 100 futures up 1.9 percent at 0930 GMT (5:30 a.m. ET).
Europe remains a key investment market for China's foreign exchange reserves, the Chinese central bank said on Thursday, helping to soothe markets unnerved by a report it was reviewing its euro zone bond holdings.
A top Federal Reserve official, St. Louis Federal Reserve President James Bullard, said he did not expect contagion from Europe's fiscal problems to the United States and the world's biggest economy may actually benefit from a flight to safety.
Japan's Nikkei average <.N225> came off a six-month low to rise 1.2 percent on Thursday, while European stocks were up 1 percent in morning trade, led by energy companies such as Total and ENI after China denied it was looking to cut its holdings of euro zone sovereign debt. <.EU>
U.S. crude oil futures rose $1 to $72.51 a barrel on Thursday, supported by gains in equities markets and after the previous day's U.S. official oil data showed some increase in fuel demand.
Yahoo said it could return to double-digit revenue growth in the next few years, as the Internet pioneer revamps its network of websites to attract users and advertisers.
Car rental company Dollar Thrifty Group did not contact rival Avis Budget Group before agreeing to sell itself to Hertz Global Holdings Inc for several reasons, including concerns about Avis's ability to close a deal, according to a filing with U.S. regulators.
Warehouse club operator Costco Wholesale Corp posted a higher quarterly profit, helped by increased sales of items ranging from fresh food to clothes and housewares.
A Walt Disney employee and her boyfriend have been charged with an insider trading scheme in which they said the media conglomerate was in advanced talks to sell its ABC TV network.
Sony Corp <6758.T> said it would launch an e-reader in Japan by year-end, taking on rival Apple Inc just a day before its iPad hits shelves in the country.
Microsoft chief executive Steve Ballmer was unperturbed a day after rival Apple Inc shot past his firm as the world's biggest tech company by market value and said his aim was on developing a good product line and making more products.
On the economic side, investors awaited the second reading of first-quarter U.S. gross domestic product growth. Economists in a Reuters survey forecast a 3.4 percent annualized rate of growth.
NetApp Inc shares rose more than 3.6 percent in extended trading on Wednesday after the company posted results.
Wall Street staged yet another late-day reversal on Wednesday to end lower after the Financial Times reported China was reassessing its euro-zone debt holdings pushed investors into profit-taking mode.
The Dow Jones industrial average <.DJI> dropped 69.30 points, or 0.7 percent, to 9,974.45. The Standard & Poor's 500 Index <.SPX> fell 6.08 points, or 0.6 percent, to 1,067.95. The Nasdaq Composite Index <.IXIC> lost 15.07 points, or 0.7 percent, to 2,195.88.
(Reporting by Blaise Robinson; Editing by Dan Lalor)