European shares were down 0.7 percent in morning trade and the euro eased to a three-week low after another delay in a decision on a crucial bailout for Greece. .EU

Moody's warned on Thursday it might cut the credit ratings of 17 global and 114 European financial institutions, in another sign the impact of the euro zone debt crisis is spreading. Among the banks listed were Morgan Stanley (MS.N), Goldman Sachs (GS.N) and Bank of America (BAC.N).

The Chinese Commerce Ministry is reviewing Google Inc's (GOOG.O) $12.5 billion purchase of Motorola Mobility Holdings Inc (MMI.N), a ministry spokesman said on Thursday.

Data storage equipment maker NetApp Inc (NTAP.O) reported results in line with Wall Street projections, news that sent its shares surging nearly 8 percent in after-hours trading after disappointing results in past quarters.

AMR Corp (AAMRQ.PK), the parent company of American Airlines Inc, posted a fourth-quarter loss on non-cash charges and reorganization items. The company, which filed for Chapter 11 creditor protection on November 29, posted a net loss of $1.1 billion for the fourth quarter, compared with a loss of $97 million a year ago.

Car rental company Avis Budget Group (CAR.O) posted a surprise fourth-quarter loss, hurt by lower pricing.

Underwear maker Hanesbrands Inc (HBI.N) expects to report a quarterly loss for the first time in two years, as rising cotton costs and increased competition in its wholesale outerwear business hit margins.

CBS Corp (CBS.N) beat Wall Street profit forecasts on Wednesday and predicted a record-breaking 2012, driven by an improving U.S. economy, higher fees from pay-TV distributors and strong political advertising revenue in a contentious election season.

A number of companies, including Duke Energy Corp (DUK.N),

Applied Materials (AMAT.O), and Agilent Technologies Inc. (A.N), are due to report earnings figures.

On the economic side, the Commerce Department will release housing starts and permits for January. Economists in a Reuters survey forecast a 675,000 annualized rate for January starts versus 657,000 in December. Investors also awaiting the Producer Price Index.

U.S. stocks fell on Wednesday, the third time in four sessions, with market direction largely dictated by swings in the shares of Apple Inc (AAPL.O), the world's most valuable company. The Dow Jones industrial average .DJI dropped 97.33 points, or 0.76 percent, to 12,780.95, the Standard & Poor's 500 Index .SPX lost 7.27 points, or 0.54 percent, to 1,343.23, and the Nasdaq Composite Index .IXIC fell 16 points, or 0.55 percent, to 2,915.83.

(Reporting by Blaise Robinson)

• A Permanent Economic Emergency