A look at the day ahead in European and global markets from Kevin Buckland

The global equity sell-off looks set to extend into Europe on Thursday although the region may be spared the carnage in parts of Asia, where Japan's Nikkei tumbled as much as 3% and Hong Kong's Hang Seng slumped close to 2%.

Earnings this week from the likes of Alphabet and Tesla have not supported the market's sky-high tech valuations, sending not just mega-cap stocks but all of Wall Street sliding back to earth from near-record peaks.

Japan's exporter-heavy equity market was hit particularly hard by a reversal in the yen, which has rebounded to about 152 per dollar from a three-decade trough near 162 yen per dollar around the start of this month.

The yen has regained its safe-haven appeal right when traders were bailing out of short yen positions, amid a barrage of suspected currency interventions by Tokyo and before crucial policy decisions by the Bank of Japan and Federal Reserve, both on July 31.

Meanwhile, ailing Chinese markets continue to take a beating. Beijing's latest surprise rate cut on Thursday only stoked worries about the economy, rather than shoring up sentiment.

The more muted performance of European stocks relative to Wall Street and Japan over the past couple months means there's less froth to come off the top, potentially leading to a shallower sell-off.

But there are plenty of risk events to brace for as earnings season gathers momentum. From drugmakers AstraZeneca and Sanofi to Stellantis and BAT, a wide swath of industry giants report on Thursday.

Nestle will be one to watch, particularly if you're a fan of KitKat or Smarties. The company may be set to hike prices again in the run-up to Halloween and Christmas, after ruling out changing recipes as a way to deal with soaring cocoa prices.

Hermes merits attention as well, after earnings at LVMH and Gucci-owner Kering were battered by flagging Chinese demand.

Clues to the overall business environment around Europe will also be offered in surveys from France, Germany and the UK.

Key developments that could influence markets on Thursday:

-France business climate (July), Germany Ifo business climate (July), UK CBI business optimism (Q3)

-Earnings from AstraZeneca, BAT, Hermes, Nestle, Sanofi, Stellantis