European stocks opened slightly higher on Thursday as investors braced for a wave of economic data from major economies and ahead of comments from U.S. Federal Reserve Chairman Jerome Powell.
The pan-European STOXX 600 index rose 0.2% to 514.90 points in early trading.
The French CAC index rose 0.2%, or 18 points, to 7,543 points, and the British FTSE 100 index rose 22 points, or 0.26%, to 8,305 points.
The retail sector rose to the top, supported by a 5.3% rise in JD Sports after the British sportswear retailer reported improved underlying sales growth in the second quarter, Reuters reported.
Energy stocks were the worst performers, down 0.6% as oil prices fell for a fifth session as investors worried about the outlook for global demand.
Markets expect the flash PMI for France, Germany, Britain and the eurozone to fall in data released today.
Shares of Deutsche Bank rose 2.5% after the lender reached settlements with more than half of the plaintiffs who accused the company of underpaying them.
Traders now see a 38% chance of a 50 basis point rate cut at the Fed's September 17-18 meeting, up from 33% the day before, and a 62% chance of a 25 basis point cut.
Minutes from the Federal Reserve's July 30-31 policy meeting released Wednesday showed that they were strongly in favor of cutting interest rates at their September policy meeting, and many were prepared to cut borrowing costs immediately.
Jerome Powell will deliver the keynote address at Jackson Hole on Friday, as markets await any comments on the likely size of the cut next month and whether borrowing costs are likely to fall at each subsequent policy meeting.
