Europe wobbles as Greek crisis worsens

European equities are expected to open mixed on Thursday as Greece's economic outlook deteriorates further.

Greece could rattle markets on Thursday after the country's economic situation led ratings agency Standard & Poor's to revise the country's sovereign credit outlook to negative from creditwatch negative. "Without deep economic reform or further relief, we expect Greece's debt and other financial commitments will be unsustainable," S&P said.

European Central Bank chief Mario Draghi was questioned about Greece following the central bank's policy decision on Wednesday where it kept rates at 0.05 percent, as expected. Draghi dismissed fears of a Greek default and a bubble in bond markets and said he is not ready to even "contemplate" a default by Greece, as ECB policymakers approved increasing emergency funding for Greek banks, according to media reports.

Ahead of a meeting with Greek Finance Minister Yanis Varoufakis on Friday, U.S. Treasury Secretary Jacob Lew said he would press Varoufakis to "engage proactively" with European officials to resolve a standoff over emergency financing, Dow Jones reported late Wednesday.

German Finance Minister Wolfgang Schaeuble poured cold water on hopes for a deal at a meeting of euro zone finance ministers on April 24, however, saying he doubts a solution would be reached.

In business news, the steering committee of Volkswagen's supervisory board will likely meet by Friday to try to resolve a leadership crisis at the German carmaker, two sources familiar with the matter told Reuters on Wednesday.

Following the European Commission's decision to file antitrust charges against the tech giant Wednesday, saying it had exploited its dominant position in the Internet search market, the company's competitors in the U.S. are pushing U.S. antitrust enforcers to investigate allegations that the company unfairly uses its Android system to win online advertising, Reuters reported, citing unnamed sources.

Earlier this month the Reserve Bank of Australia (RBA) surprised markets with its decision to keep interest rates on hold at 2.25 percent. Analysts expected the central bank to cut rates to a fresh record low amid tepid economic growth and as Australian dollar strength continues to exacerbate the rout in commodity prices despite its around 18 percent decline over the past 12 months.
The RBA was likely waiting for more data on employment, inflation and property prices, analysts said following the policy decision. Thursday's employment data will likely prove integral to the central bank's next rate decision.