Swiss join UK, U.S. in questioning banks

In Sweden, the unemployment rate rose to 9 percent in May, compared with 5.9 percent a year earlier.

Investors have hoped that China, the world's third largest economy, could lead the way out of recession. On Thursday World Bank raised its China forecast for growth this year to 7.2 percent, below Beijing's official target of 8 percent but up from the bank's 6.5 percent projection in March.

"China's economic growth is unlikely to rebound to a high single-digit pace before the world economy recovers to solid growth," it said.

In Japan, a Reuters poll showed manufacturers have grown much less pessimistic about business over the last month, but consumer reluctance to spend has reinforced concerns that the recovery will be long and slow.

A belief that the worst is past in the deepest global recession in six decades has driven world stocks up around 40 percent from a March low. But investors are now looking for signs of recovery.

The FTSEurofirst 300 index was down in early trade on Thursday, while Japanese shares fell 1.4 percent.