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.

The Fed "continues to expect that the evolution of the economy will warrant gradual increases in the federal funds rate over time", Yellen said, even as she cautioned that reducing its $4.5 trillion balance sheet should begin this year. The stance dovetails with comments earlier this week from two of her Fed colleagues - Neel Kashkari and Lael Brainard - who both said that tepid inflation data means there's no rush to change any views on the pace of rate increases.

Government bond yields, whose rise has been hampering equity markets for the past two weeks, fell sharply in U.S. trading before stabilizing in Asia, with benchmark 10-year U.S. Treasuries marked at 2.31% during European trading while the dollar index, a measure of the greenback's strength against a basket of six global currencies, was pinned at a near nine-month low of 95.72.

Global oil prices were under pressure again Thursday after a report from the International Energy Agency said compliance from OPEC members on its agreed production cuts fell to the lowest level of the year last month.

In its regular monthly report, the Paris-based group said cartel members' compliance with its pact to trim production by 1.2 million barrels per day -- which was extended through the end of March 2018 -- slipped to 78% in June from 95% in May. Global oil supply, the IEA said, rose to 720,000 barrels per day last month as major producers such as Saudi Arabia, Libya and Nigeria lifted output.

West Texas Intermediate crude futures for August delivery were marked 1% lower from their Wednesday close at $44.99 per barrel following the IEA report, while Brent contracts for September, the global benchmark were seen 1.05% lower at $47.18 per barrel.