Europe seen lower as Greek rollercoaster talks continue

European equities are expected to open lower Thursday after the European Central Bank (ECB) put more pressure on Greece to come to an agreement with its lenders over the future of its bailout program.

Markets are bracing for a volatile day after the ECB took a hard line on Greek debt, revoking a waiver that allowed banks to use Greek government debt as collateral for loans.

In a statement late Wednesday, the ECB said it was no longer able to assume there would be a successful conclusion to the Greek government's bailout program review. Since coming to power almost two weeks ago, the new Greek government – the Syriza party – has sought to overhaul the nation's bailout program with European Institutions.

Greek Prime Minister Alexis Tsipras met with European Commission President Jean-Claude Juncker and the president of the European Union's parliament, Martin Schulz, in Brussels earlier on Wednesday and both struck a conciliatory note, saying that a compromise could be found.

Greek talks have overshadowed other news in financial markets including the People's Bank of China's decision on Wednesday to reduce reserve requirements for major banks by 50 basis points for the first time in two years. The easing measures by the central bank come amid increasing signs of a slowdown in the world's second-largest economy.

China's benchmark Shanghai Composite index pared gains after jumping 2 percent at the open following the central bank's RRR cut.

French bank BNP Paribas reported a sharp decline in full-year net profit on Thursday, of 157 million euros ($178 million) in 2014 -- down 96.7 percent on the previous year.

In Europe Thursday, earnings are due from AstraZeneca, Munich Re, Daimler, Sanofi, Volvo and Vodafone.