European markets expected to rise as investors process unexpectedly low inflation information.

European stocks are predicted to open upwards on Thursday due to investors processing unexpectedly low inflation figures in both the U.S and U.K.

According to IG data, the U.K.'s index is predicted to open 50 points higher at 8,300, Germany's index is expected to rise 94 points to 17,973, France's index is anticipated to increase by 38 points to 7,361. However, Italy's index will be closed on Thursday.

European markets finished higher on Wednesday as investors evaluated key inflation figures from the U.S. and U.K. In July, U.K. inflation increased to 2.2%, slightly below forecasts but above the Bank of England's 2% target, according to data from the Office for National Statistics.

After the U.S. consumer price index showed a slowing annual inflation rate of 2.9%, stocks climbed later in the day stateside.

The US data, along with a key measure of wholesale inflation released on Tuesday that rose less than expected, has reassured investors that an economic soft landing is still possible.

The U.S. Federal Reserve is considering cutting interest rates by either 25 or 50 basis points in September, as suggested by market pricing. According to CME's FedWatch tool, there is a 58.5% chance of a 25-basis-point cut and a 41.5% chance of a 50-basis-point cut.

Wednesday evening, U.S. stock futures slightly increased, while Asia-Pacific markets experienced growth overnight following Japan's GDP data surpassing expectations.

In Europe on Thursday, the U.K. will release GDP data and Adyen will report earnings.