The Mortgage Bankers Association releases at 1200 GMT the Weekly Mortgage Market Index for the week ended February 17. The mortgage market index read 801.8 and the refinancing index was 4,538.0 in the previous week.

PSA Peugeot Citroen (PEUP.PA), Europe's second-biggest car maker, said it is in talks over potential cooperations and alliances but did not name its possible partners, after media reports said it was in advanced discussions with General Motors (GM.N).

The Obama administration will propose slashing the top income tax rate for corporations to 28 percent from the current 35 percent as part of a corporate tax reform plan that is set to be announced on Wednesday, the Wall Street Journal said.

ICSC/Goldman Sachs release at 1245 GMT chain store sales for the week ended February 18. In the previous week, sales fell 2.0 percent.

On the earnings front Hewlett-Packard will be in focus. The market expects a profit of 87 cents per share, down from $1.36 one year ago. Other companies announcing results included Express Scripts (ESRX.O), TJX (TJX.N) and Analog Devices (ADI.N).

A Shanghai court began hearing on Wednesday a case brought by a Chinese technology firm seeking to halt the sale of Apple's (AAPL.O) iPads across the affluent Chinese city, accusing the U.S. firm of trademark infringement.

Redbook Research releases at 1355 GMT its Retail Sales Index of department and chain store sales for February versus January. In the prior period, sales rose 1.3 percent.

The National Association of Realtors (NAR) releases at 1500 GMT existing home sales for January. Economists forecast a 4.65 million annualized unit total, versus 4.61 million in December.

Wells Fargo & Co (WFC.N) said it is buying an energy lending business from BNP Paribas (BNPP.PA) in the U.S. bank's latest acquisition from a European bank seeking to shrink its balance sheet.

The FTSEurofirst 300 .FTEU3 index of top European shares fell 0.5 percent on Wednesday on persistent concerns over Greece's ability to reform its economy.

Greece must complete a swap of private holdings of its debt as part of a 130-billion-euro EU/IMF bailout package by around March 10 at the latest, caretaker Prime Minister Lucas Papademos said on Tuesday.

On Tuesday the Dow Jones industrial average .DJI finished up 15.82 points, or 0.12 percent, at 12,965.69. The Standard & Poor's 500 Index .SPX was up 0.98 point, or 0.07 percent, at 1,362.21. The Nasdaq Composite Index .IXIC was down 3.21 points, or 0.11 percent, at 2,948.57.

(Reporting by Atul Prakash; Editing by Greg Mahlich)

• A Permanent Economic Emergency