Stock index futures pointed to a lower open on Wall Street, with futures for the S&P 500, Dow Jones futures and Nasdaq 100 futures down between 1.4 to 1.8 percent at 0923 GMT (5:23 a.m. ET).

After the Federal Reserve said the economy faced significant downside risks on Wednesday, investors will watch the two-day Group of 20 meeting in Washington to see if there is any further policy response in tackling the global slowdown and euro zone debt crisis.

Investors will also watch the U.S. weekly jobless claims at 1230 GMT and the Federal Housing Finance Agency Home Price Index for July at 1400 GMT for signs of growth as concerns grow about the economy.

In merger and acquisition news, United Technologies Corp is acquiring aircraft components maker Goodrich Corp in a $16.5 billion cash deal in what would be its largest deal since 2000.

In an abrupt shift in strategy, the United Auto Workers union has focused its contract negotiations on Ford Motor Co after talks stalled with Chrysler.

FedEx Corp is expected to report higher quarterly results than a year ago, but there are concerns by analysts that full-year guidance could be cut due to the fragile economic recovery.

Bank of America Corp's divisional manager jobs have been cut to 11 from 24 in a shake up by top Merrill Lynch brokerage boss John Thiel.

Exxon Mobil Corp might receive much less compensation than the U.S. oil giant wanted from Venezuela for the nationalization of its assets in 2007 after the energy minister proposed a figure of $1 billion.

The FTSEurofirst 300 index <.FTEU3> fell 3.8 percent on Thursday on worries about global growth following the Federal Reserve bleak economic outlook and a slowdown in China manufacturing activity.

Wall Street shares saw their worst drop in a month after the Fed, with the Dow Jones industrial average <.DJI> dropping 2.5 percent, the Standard & Poor's 500 Index <.SPX> losing 2.9 percent and the Nasdaq Composite Index <.IXIC> falling 2 percent.

(Reporting by Joanne Frearson; Editing by Hans-Juergen Peters)

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