Germany's DAX is hovering at its highest level in three and a half months.

DAX remained relatively flat on Thursday before edging higher, reaching its mid-March levels. Investors are waiting for Germany's inflation data, which is expected to decline to 2.1% in August, the lowest in over three years.

In Spain, inflation rate has slowed down more than expected, reaching 2.2% which is the lowest level in 14 months.

Investors also reviewed NVIDIA's second quarter earnings. The company reported revenues of $30 billion for the quarter ending on July 28, slightly exceeding analysts' estimates.

The performance of major companies varied, with gains from SAP, Deutsche Telekom, and Airbus offsetting losses from Siemens and Allianz.