Investors were also hoping US nonfarm payroll data at 1230 GMT will show some underlying strength in October, but analysts are suggesting it might be too weak to pull down the nation's lofty jobless rate.

Government sources told Reuters Greek Prime Minister George Papandreou had agreed to step down and make way for a negotiated coalition government if his Socialists back him in a confidence vote on Friday.

Banking stocks, which were one of the main focuses in the previous session, due to their exposure to sovereign debt will likely again be in the spotlight.

Financial spreadbetters expected Britain's FTSE 100 to open 4 to 15 points higher, or as much as 0.3 percent, Germany's DAX to open 14 to 28 points higher, or as much as 0.5 percent, and France's CAC-40 to open up 5 to 11 points, or as much as 0.3 percent.