European stocks are likely to open on a positive note Tuesday as investors take a cautiously optimistic view about economic recovery.

In prepared testimony for a congressional hearing later today on the pandemic emergency lending and the asset purchase programs, Fed Chair Jerome Powell said he believes the current jump in inflation will likely fade and the U.S. central bank will do everything to support the economy for as long as it takes to complete the economic recovery.

New York Fed President John Williams also expects the recent acceleration in price gains to prove temporary, while Dallas Fed President Robert Kaplan and St. Louis Fed President James Bullard toned down their hawkish rhetoric.

The Bank of England interest rate decision is due on Thursday and policy changes are unlikely.

Asian markets followed Wall Street higher as shorter-term yields fell and the dollar index slipped from a two-month high against its rivals.

Brent oil hit $75 a barrel for the first time since April 2019, while Bitcoin recouped some loss after slipping toward $30,000 as China intensified its cryptocurrency clampdown.

Flash consumer confidence figures for the Eurozone and comments from ECB members may sway sentiment as the day progresses.

Across the Atlantic, Powell’s congressional testimony and the National Association of Realtors’ report on existing home sales may move markets.

U.S. stocks advanced overnight as banks and energy companies recovered some of last week’s steep losses following the Federal Reserve policy update.

U.S. Treasury yields dropped and the dollar’s rally paused after New York Federal Reserve Bank President John Williams said that the current economic recovery may be choppy and he isn’t ready for the U.S. central bank to dial back the support it is giving the economy.

The Dow rallied as much as 1.8 percent to snap its five-day losing streak and post its best performance since early March, while the S&P 500 climbed 1.4 percent and the tech-heavy Nasdaq Composite index rose 0.8 percent.

European stocks rose on Monday after the European Central Bank President Christine Lagarde said the bank will continue with its accommodative monetary policy to support the ongoing economic recovery.

The pan European Stoxx 600 rose 0.7 percent. The German DAX jumped 1 percent, France’s CAC 40 index gained half a percent and the U.K.’s FTSE 100 added 0.6 percent.

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