(fxcue news) - European stocks look set to open on a positive note Thursday as traders eye September for the Federal Reserve's first rate cut. "Our undertaking is to make decisions when and as they need to be made, based on the data, the incoming data, the evolving outlook and the balance of risks, and not in consideration of other factors, and that would include political factors," Fed Chair Jerome Powell said in a hearing before the House Financial Services Committee. Elsewhere, the European Central Bank could also move to cut interest rates in September while the chances of a Bank of England rate cut in August remains an "open question", according to Bank of England Chief Economist Huw Pill. Asian markets traded mostly higher ahead of a key Communist Party meeting in China next week, with top officials expected to discuss ways to boost economic growth in the face of an ongoing property crisis and geopolitical issues. There are also expectations that a U.S. government report due later in the day will show inflation continued to moderate in June. Gold inched up on falling yields amid rate cut bets, while oil extended overnight gains following OPEC's strong oil demand forecast. The dollar lost ground with upcoming U.S. consumer price index inflation data squarely in focus. Economists expect a 0.1 percent rise in CPI month-over-month and a 3.1 percent gain year-on-year. Friday's release of wholesale inflation numbers and the U.S. earnings season also remain on investors' radar. A number of big financial institutions will be reporting their quarterly numbers starting on Friday. Closer home, GDP and foreign trade data from the U.K. as well as final inflation figures from Germany are awaited later in the day. U.S. stocks rose sharply overnight as investors braced for key economic data and corporate earnings releases. The S&P 500 rallied 1 percent to close above 5,600 for the first time ever and the tech-heavy Nasdaq Composite surged 1.2 percent to finish higher for the seventh consecutive session as Taiwan Semiconductor Manufacturing easily beat expectations for June sales. The Dow climbed 1.1 percent to end just shy of its own record. European stocks rose for the first time in three days on Wednesday after Powell's comments gave scant clues on rate cuts. The pan European STOXX 600 advanced 0.9 percent. The German DAX and France's CAC 40 both jumped by 0.9 percent while the U.K.'s FTSE 100 added 0.7 percent.