European stock markets are trading higher on Thursday, as investors eyed the Bank of England’s policy statement due later in the trading session and as they remained cautious ahead of the U.S. presidential election next week.

Europe's leading Blue-chip index, EURO STOXX 50 rose 3.86 points or 0.13 percent to trade at 2,984.03. UK's benchmark index FTSE 100 gained 12.06 points or 0.18 percent to trade at 6,858.14.

Meanwhile, Germany's benchmark index DAX 0.12 points to trade at 10,371.05. French benchmark index CAC 40 rose 6.83 points or 0.15 percent to trade at 4,421.50.

On Wednesday, European stock markets settled sharply lower. Europe's leading Blue-chip index, EURO STOXX 50 lost 42.98 points or 1.42 percent to settle at 2,980.17. UK's benchmark index FTSE 100 lost 71.72 points or 1.04 percent to close at 6,845.42.