European markets are poised to open higher after the chairman of the US Federal Reserve indicated that interest rates are close to being cut in America.

Jerome Powell told a congressional hearing that policymakers are “not far” from having the confidence to cut interest rates in his strongest hint yet that monetary policy could ease in the coming months in the US.

US stocks climbed to fresh records on Thursday and Asian shares were mostly higher overnight, with Australia’s S&P/ASX 200 closing at an all-time peak.

European markets are on track to open higher when trading begins shortly.

Read the latest updates below.