The Mortgage Bankers Association releases its Weekly indexes for the week ended June 1 at 07:00 a.m. EDT (1100 GMT). The mortgage market index read 794.7 and the refinancing index was 4,388.8 in the previous week.

General Motors' (GM.N) struggling European unit Opel has emerged from its worst-ever sales crisis in Germany and now expects to gradually expand its slice of the market back into the double digits, a level not seen since 2005.

The Labor Department releases at 08:30 a.m. EDT (1230 GMT) revised Q1 Productivity and Unit Labor Costs. Economists forecast productivity to fall 0.7 percent, versus a 0.5 percent drop in the preliminary Q1 report. Unit Labor costs are expected to rise 2.2 percent, compared with a 2.0 percent increase in the preliminary Q1 report.

The Federal Reserve releases Beige Book of regional economic conditions at 10:00 a.m. EDT (1400 GMT).

Facebook Inc (FB.O) is making it easier for advertisers to reach the growing ranks of users on smartphones and mobile devices, taking a significant step toward addressing one of investors' most pressing concerns and broadening its appeal to marketers.

European shares .FTEU3 rose more than 1 percent on Wednesday on speculation the European Central Bank could act to stimulate the economy and stem a deepening debt crisis in the euro zone.

The European Central Bank announces its rate decision at 1145 GMT. Interest rates are expected to be held at 1.00 percent.

Spain said it is losing access to credit markets and appealed to its European partners to help revive its banks, a distress signal sure to intensify global pressure on Europe to move faster to the aid of its fourth-largest economy.

The European Commission will propose far-reaching powers for regulators to deal with failing banks on Wednesday, a step towards the banking union the European Central Bank has demanded to secure the euro's future.

Moody's Investors Service cut the credit ratings of six German banking groups and Austria's three largest banks on Wednesday, saying they face risks if the euro zone crisis deepens.

Australia's resource-fuelled economy outpaced all expectations last quarter as households and businesses went on a spending spree, boosting the local dollar and lessening the urgency for further aggressive cuts in interest rates.

U.S. stocks rose on Tuesday, recovering some ground from last week's selloff, as data showing the vast U.S. services sector improved in May outweighed investor angst about the euro zone's fiscal crisis.

The Dow Jones industrial average .DJI was up 26.49 points, or 0.22 percent, at 12,127.95. The Standard & Poor's 500 Index .SPX was up 7.32 points, or 0.57 percent, at 1,285.50. The Nasdaq Composite Index .IXIC was up 18.10 points, or 0.66 percent, at 2,778.11.

(Reporting by Atul Prakash; Editing by Toby Chopra)

• A Permanent Economic Emergency