European Stocks May Extend Gains

European stocks may open on a firm note Thursday, extending the previous session's relief rally, as the joint central bank action to make more funds available to cash-strapped banks lessened the prospects of further downside risks emanating from the European debt crisis.

Asian stocks soared, with Hong Kong's Hang Seng index climbing more than 5 percent as cheap access to U.S. dollar funding and signals of a shift in policy stance in China outweighed data showing a contraction in Chinese manufacturing activity. The euro gained the most in a month against the dollar as risk appetite returned to markets after the central banks' action.

On the macro economic front, France's unemployment rate increased in the third quarter in line with economists' expectations, data released by the statistical office INSEE showed. The ILO-jobless rate for metropolitan France rose to 9.3 percent from 9.1 percent in the second quarter versus forecasts for an increase to 9.3 percent.

Meanwhile, International Monetary Fund chief Christine Lagarde said that the Fund is not in talks over providing loans to troubled Eurozone members Italy and Spain. Speaking at a press conference in Mexico, she said the IMF is ready to help the euro area in its efforts to curb the crisis, but the Fund will also make sure that it has funds for countries outside Europe.

In corporate news, mining giant Rio Tinto has extended its offer to acquire all the common shares of Hathor Exploration for C$4.70 in cash by 10 days to 12 December 2011.

UBS AG said it appointed Philip Lofts as its Group Chief Risk Officer, replacing Maureen Miskovic.

Zurich Financial Services Group said it is on track to reduce run-rate costs by $500 million by 2013 with part of those savings deployed to fund attractive growth opportunities in emerging markets.

Saint-Gobain said that it has finalized the acquisition of Abrasivos Argentinos S.A. and Dancan S.A. in Argentina, together with their subsidiaries in Brazil and Uruguay, specialized in the production of coated abrasives and masking tapes.

German cosmetics giant Beiersdorf unveiled its strategy to lay off about 1000 employees worldwide and strengthen consumer business by focusing more on skin care unit.

Steelmaker Salzgitter AG said its 2011 profit after tax will be about 100 million euros higher as it combined all material domestic group companies into one uniform group for tax purposes.

The U.K.'s National Institute for Health and Clinical Excellence announced that it has not recommended Novartis AG's multiple sclerosis pill Gilenya for a second time.