Stock index futures pointed to a flat open on Wall Street on Thursday, with futures for the S&P 500 up 0.02 percent, Dow Jones futures up 0.15 percent and Nasdaq 100 futures up 0.02 percent at 0925 GMT.
European stocks dropped 1 percent and the euro turned lower on the day against the dollar on Thursday morning after benchmark 10-year Spanish government bond yields rose to hit 7 percent, a level deemed too expensive for a sovereign to continue borrowing cash over the long term. <.EU>
Moody's slashed its rating on Spanish government debt by three notches to 'Baa3' from 'A3', saying the newly-approved euro zone plan to help Spain's banks will increase the country's debt burden.
Italy was also in the spotlight as the country's borrowing costs jumped at a bond auction on Thursday.
On the macro front, investors awaited the monthly U.S. Consumer Price Index, due at 1230 GMT, as well as first-time claims for jobless benefits for the week ended June 9, at the same time.
Tech shares will be in the spotlight after loss-making Finnish cellphone maker Nokia said it plans to cut another 10,000 jobs globally in its biggest revamp in recent history, while it warned the second-quarter loss from its cellphone business would be larger than expected.
Stockton, California, faces a growing likelihood of defaulting on some of its debt obligations as the conclusion of confidential talks with its creditors aimed at averting bankruptcy nears, Moody's Investors Service said in a statement on Wednesday.
Wall Street ended lower on Wednesday as fears ahead of the weekend elections in Greece finally drove down a market that had been treading water through most of the day.
The Dow Jones industrial average <.DJI> fell 77.42 points, or 0.62 percent, at 12,496.38. The Standard & Poor's 500 Index <.SPX> lost 9.30 points, or 0.70 percent, at 1,314.88. The Nasdaq Composite Index <.IXIC> dropped 24.46 points, or 0.86 percent, at 2,818.61.
(Reporting by Blaise Robinson; Editing by Adrian Croft)