This is CNBC's live blog covering European markets.

European stocks are set to open in positive territory Thursday as investors await more earnings reports and interest rate decisions from central banks in the region.

The U.K.'s FTSE 100 index is expected to open 46 points higher at 8,586, Germany's DAX up 147 points at 23,263, France's CAC 45 points higher at 7,662 and Italy's FTSE MIB 230 points higher at 37,960, according to data from IG.

It's a busy day for earnings, with Maersk, Siemens Energy, Heidelberg Materials, Henkel, Infineon, Lanxess, Puma, Rheinmetall, Bosch, Norwegian Air, Swisscom, Zurich Insurance, Adecco Group, InterContinental Hotels Group and Banco Sabadell all due to report.

Monetary policy announcements are due from central banks today from Riksbank, Norges Bank and Bank of England on Thursday, with the latter widely expected to cut interest rates.

U.S. stock futures were relatively unchanged overnight on the heels of the U.S. Federal Reserve holding steady on rates as it highlighted rising inflation and unemployment risks.

The Federal Open Market Committee held its benchmark overnight borrowing rate in a range of between 4.25% to 4.5%, where it has been since December. The decision was largely expected.

Fed Chair Jerome Powell warned in his press conference that if the significant tariff hikes already announced remain at current levels, they could lead to a slowdown in economic growth and an uptick in long-term inflation.

Asia-Pacific markets traded mixed overnight after the Fed's decision, with investors awaiting updates on the upcoming U.S.-China trade talks. U.S. Treasury Secretary Scott Bessent and his Chinese counterpart are set to meet in Switzerland this week to address the countries' deep trade dispute and economic issues.

Germany's Siemens Energy on Thursday posted a better-than-expected 20.7% annual jump in quarterly revenue, citing increased demand thanks to "favorable market trends" that ultimately led to one of the company's best quarters.

Total revenue for the firm's fiscal second quarter came in at 10 billion euros ($11.3 billion), above the 9.3 billion euros expected by analysts, according to LSEG data. Net income reached 501 million euros — up from 108 million euros in the same period last year.

The company upgraded its full-year guidance on the back of the results, saying it now expects to achieve revenue growth in the range of 13% to 15% in 2025, with a net income of up to 1 billion euros.

However, Siemens Energy also warned that U.S. President Donald Trump's tariffs regime — and retaliatory measures from other countries — is expected to have a direct impact on its bottom line.

"Siemens Energy is closely monitoring developments and continuously analysing their potential impact on its net assets, financial position and results of operations," the company said in its earnings release. "For the second half of the fiscal year 2025, a limited direct impact on Siemens Energy's Profit of up to a high double-digit million € amount, after mitigation measures, is currently expected."

— Chloe Taylor

Britain is reportedly set to sign a trade deal with the U.S., making it the first country to do so after the world's largest economy announced stiff "reciprocal" tariffs against friends and foes alike in April.

The New York Times reported the development after U.S. President Donald Trump said on Wednesday night stateside that there will be a briefing about a trade deal next day, without revealing any details.

CNBC did not receive a response from the White House and the British Embassy in Washington seeking comments on the news.

A government spokesperson from the U.K.'s Department for Business and Trade said in response to CNBC's queries that "The US is an indispensable ally and talks on an economic deal between the U.S. and the UK are ongoing."

Read the full story here.

— Lim Hui Jie

U.S. equity positioning may not be all that upbeat despite recent trade developments and quarterly results, according to Citi.

"De-escalating trade tensions and a better-than-expected earnings season have led to a period of stability for investor positioning. However, the uplift from bullish flows has been considerably restrained," Chris Montagu, the firm's global head of quantitative research, wrote in a note on Wednesday.

Montagu found that positioning momentum levels are actually close to neutral for both the S&P 500 and the Nasdaq Composite.

"Limited bullish flows were overshadowed by increasing short positioning, leading to a decline in positioning levels for the S&P," he continued. "Nasdaq positioning edged higher, but neither index reflected a strong shift towards bullish positioning over the past week."

— Sean Conlon

Fed Chair Jerome Powell acknowledged rising headwinds to the central bank's dual mandate on Wednesday.  

"My gut tells me that uncertainty about the economy is extremely elevated. The downside risks have increased," Powell told reporters. 

However, he added, "The risks of higher unemployment and higher inflation have risen, but they haven't materialized yet. … And that tells me more than my intuition," reiterating the Fed's decision to keep interest rates unchanged.

— Hakyung Kim

European markets are expected to open higher Thursday.

The U.K.'s FTSE 100 index is expected to open 46 points higher at 8,586, Germany's DAX up 147 points at 23,263, France's CAC 45 points higher at 7,662 and Italy's FTSE MIB 230 points higher at 37,960, according to data from IG.

It's a busy day for earnings, with Maersk, Siemens Energy, Heidelberg Materials, Henkel, Infineon, Lanxess, Puma, Rheinmetall, Bosch, Norwegian Air, Swisscom, Zurich Insurance, Adecco Group, InterContinental Hotels Group and Banco Sabadell all due to report.

Monetary policy announcements are due from Riksbank, Norges Bank and Bank of England on Thursday, with the latter widely expected to cut interest rates.

— Holly Ellyatt