Europe seen lower on elusive Greek deal

European equities are expected to open lower Thursday as the standoff between Greece and its creditors shows no signs of ending.

Greece continues to dominate the headlines as a deal on reforms and debt between Greece and its creditors continues to elude both parties. On Wednesday, Greek Prime Minister Alexis Tsipras met with German leader Angela Merkel and French President Francois Hollande.

The leaders agreed to intensify talks to avert a Greek default but no breakthrough was made over the reforms Greece has to implement before it can receive more aid. Without aid Greece risks defaulting on debt payments due later this month to the International Monetary Fund (IMF).

Ratings agency S&P lowered Greece's sovereign credit rating to CCC from CCC+ on Wednesday, warning that a Greek default was likely within the next 12 months.

Meanwhile in the U.K., investors will react Thursday to Finance Minister George Osborne's Mansion House speech Wednesday night in which he outlined plans to ensure future governments maintain a budget surplus when the economy is growing. He also said the UK government would start selling its stake in bank RBS in the coming months.

In Asia, equity markets in China lagged behind their other Asian peers on Thursday, as investors await ed a raft of monthly indicators, including May retail sales and industrial production, that may shed light on the health of the world's second-largest economy.

Earnings Thursday come from Mulberry and on the data front, Greek unemployment figures are released.