European stocks edged to a fresh seven-year high in quiet trade Thursday, with investors showing little reaction to a second day of testimony from U.S. Federal Reserve Chairwoman Janet Yellen.

The Stoxx Europe 600 index was 0.2% higher in early trade, having inched lower in Wednesday's session.

A calmer tone has returned to markets since a deal was struck to extend Greece's international bailout, ending weeks of negotiations that sparked volatility.

"Greece will probably slip off the radar for a while, with the next key events coming in April and early May," said analysts at Barclays.

On Wednesday, U.S. stocks inched to a record high as traders scanned Ms. Yellen's congressional testimony for any clues about the timing or pace of interest rate increases. The Fed chair offered few new hints, but reiterated the message that rate increases are likely later this year as the U.S. economy improves.

A rate hike in June remains likely, said Barclays.

Ms. Yellen's testimony offered little fresh impetus for currency markets. The euro and the pound were both steady against the dollar at $1.1361 and $1.5523 respectively.

In Europe, investors are preparing for the start of the European Central Bank's bond buying program next month, which is widely expected to drive stocks and bonds higher. Bond yields across Europe, which fall as prices rise, have already been dragged to record lows. German yields are now negative up to maturities of seven years, while German 10-year debt yields just 0.3%.

In commodity markets, Brent crude oil was down 0.2% at $61.52 a barrel, and gold was up 0.9% at $1,212.00 an ounce.

Write to Tommy Stubbington at tommy.stubbington@wsj.com

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