Futures on major U.S. indices point to lower opening on Friday as concerns over European debt crisis, and escalating tensions between North and South Korea weighed on the sentiment.

Futures on the S&P 500 are down 1.03 percent, futures on the Dow Jones Industrial Average are down 0.83 percent and Nasdaq100 futures are down 0.94 percent.

Trading is expected to be calm on Friday after markets enjoyed a Thanksgiving Holiday on Thursday and stock markets will close early at 1 p.m. ET.

A report said the European Central Bank is urging Portugal to follow Ireland's example and seek financial aid from the International Monetary Fund, while the Portuguese government denied the news report. There are also fears that Spain might be forced to follow suit.

Authorities in Seoul are verifying the reports of sounds of artillery fire heard around Yeonpyeong Island in the Yellow Sea. It is yet to be determined where the firing originated from.

Retail stocks will be in focus as shoppers prepared to kick off the holiday shopping season, with retailers hoping for strong sales on the Black Friday.

Basic resources stocks declined in Europe on speculation over further Chinese monetary policy tightening to cool inflation.

On Wednesday, US stocks rallied broadly on some encouraging number from the labor market, shrugging off worrying geopolitical developments in Korea and some dour housing data.

The euro declined 0.85 percent to 1.3246 against the dollar on debt fears and the yen gained 0.30 percent against the greenback.

Crude oil futures declined 0.95 percent to $83.06/barrel and gold futures declined 0.85 percent.

European stock markets are currently trading lower with FTSE100 down by 84.22 points, DAX30 down by 84.72 points and CAC 40 down by 60.08 points.