Europe seen higher; ECB eyed

European equities are expected to open in positive territory on Wednesday as investors gear up for the European Central Bank's (ECB) policy meeting on Thursday.

European investors are preparing for Thursday's ECB meeting at which it could announce exactly when it will start its quantitative easing (QE) bond buying program. On Wednesday, euro zone composite purchasing manager's index (PMI) data is due, which could deepen the case for QE in the region.

Asian shares traded mixed on Wednesday as a strengthening Japanese currency and data showing sluggish growth in Australia damped sentiment. Meanwhile, a surprise rate cut by India's central bank lifted Indian equities to new highs.

On Thursday, U.S. stocks pulled back from recent highs, closing lower in light volume trade as investors weighed soft auto sales and looked ahead to domestic data on Wednesday, including weekly mortgage applications and private sector payrolls. The all-important U.S. nonfarm payrolls data is due Friday.

Markets will also keep an eye on Greece ahead of it receiving a final tranche of crucial aid. German Finance Minister Wolfgang Schaeuble kept his tough line on Greece, telling a German newspaper the onus was on the government in Athens to fulfil the conditions of its bailout program before further aid would be paid out, Reuters reported Wednesday.

In other news, the U.K. government announced that it is selling its 40 percent stake in the cross-Channel train operator Eurostar to an Anglo-Canadian consortium for £757.1 million ($1.16 billion) the BBC reported Wednesday morning.

Elsewhere, Royal Bank of Scotland aims to cut as many as 14,000 jobs in its investment banking units across the United States and Asia, the Financial Times reported late Tuesday.