ECB Rate Hike and US Inflation Data Fuel European Stock Rally

European equity markets are poised to open higher on Thursday as investors await the European Central Bank's upcoming policy decision.

The central bank is widely expected to deliver its second 25 basis point rate hike of the year, which has been a topic of discussion among market participants.

Meanwhile, traders are also keeping an eye on key US inflation data, which could cement expectations for a Federal Reserve rate increase next week.

Elevated oil prices due to the intensifying conflict between the US and Iran are fueling inflation concerns, reinforcing expectations for near-term rate hikes.