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U.S. stock futures turned tail and took a sharp dive, as European shares marked losses amid concerns over French banks and their exposure to the region's sovereign debt crisis.

Dow Jones futures fell 0.8 per cent while S&P 500 futures sank 0.9 per cent about 90 minutes before markets opened for business.

Meanwhile, the price of the 30-year U.S. Treasury bond erased its early losses on Thursday. The bond was last trading 1/32 lower in price and yielding 3.52 per cent.

In Europe, the FTSE 100 fell 0.3 per cent, France's CAC sank 2 per cent, and Germany's DAX lost 1.6 per cent.

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