Europe seen lower on US selloff, Yemen fears

European equities are expected to open lower on Thursday following a selloff in the U.S. Wednesday and a lackluster lead from Asia. Concerns over escalating political chaos in Yemen are also weighing on market sentiment.

Oil prices surged as much as 5 percent after Saudi Arabia announced it began military operations in Yemen on Wednesday to fight Houthi militants who aim to topple Yemen's government.

The operation involves 10 countries, including Gulf nations, and will receive logistical support from the U.S. However, American forces will not participate in military action, the White House said. Yemeni President Abed Rabbo Mansour Hadi reportedly fled Aden on Wednesday as militants moved closer to the city.

Greece also remains in the headlines. On Wednesday, Greece failed in a bid to secure a quick cash payment from the euro zone rescue fund to help stave off potential bankruptcy next month, Reuters reported, raising pressure on Athens to deliver a convincing reform program within days.

Athens had appealed for the European Financial Stability Facility to return 1.2 billion euros ($1.32 billion) it said it had overpaid when it transferred bonds intended for bank recapitalization back to the Luxembourg-based fund this month. Euro zone officials agreed that Greece was not legally entitled to the money, however, Reuters said.