European stocks edged higher Thursday following a global financial market rally sparked by dovish testimony to U.S. lawmakers from Federal Reserve Chairwoman Janet Yellen.
The region-wide Stoxx Europe 600 index, the broadest measure of regional share prices, was marked 0.46% at 386.65 points by 5 am eastern time, with commodity and financial stocks driving gains. Britain's FTSE 100 added just 2.4 points, or 0.03% in the opening two hours of trading, however, as gains were limited by a stronger pound, which was marked 0.36% higher against a weakened greenback at 1.2929.
Stocks in Asia surged overnight, with the region-wide MSCI Asia ex-Japan index rising 1.2% to its highest level in nearly two months. A corresponding slip in the U.S. dollar, which pared recent gains as investors trimmed bets on faster rate rises, boosted the yen and held down gains for the Nikkei 225 in Japan, closed 0.01% higher at 20,099.81 points.
Wall Street is slated to open higher again Thursday, following yesterday's record-high close for the Dow Jones Industrial Average, with gains of around 0.1% expected for it and the broader S&P 500. Tech stocks will also be in focus, with the Nasdaq poised to gain 24 points, or 0.43% at the opening bell, according to U.S. equity futures prices.
The global rally was sparked yesterday during prepared remarks for what could be her last appearance on Capitol Hill, when Fed Chair Yellen said rates won't need to rise "all that much further", given the balance of labor market growth and inflation in the world's biggest economy.
