Stock indices traded lower on yesterday's testimony by the Fed Chairwoman Janet Yellen. Yellen said in her prepared remarks before the House Financial Services Committee on Wednesday that further interest rate hikes will depend on the incoming economic data, adding that interest rate hikes will be gradual. She noted that there is a risk from developments abroad to the U.S. economy.

Yellen will testify before the Senate Banking Committee later in the day. It is likely that she will repeat her remarks. But questions could differ.

European Central Bank Governing Council member Ewald Nowotny said on Thursday that inflation in the Eurozone could turn into negative territory in the first half of 2016 but prices are expected to climb in the second half. He noted that there was no deflationary risk in the Eurozone.

Current figures:

Name Price Change Change %

FTSE 100 5,552.34 -119.96 -2.11 %

DAX 8,806.56 -210.73 -2.34 %

CAC 40 3,931.67 -129.53 -3.19 %