European stock markets closed higher on Wednesday as investors hoped for hints of extra stimulus from the European Central Bank, while a clutch of US company earnings boosted US stocks.

Europe's leading Blue-chip index, EURO STOXX 50 gained 35.85 points or 1.22 percent to settle at 2,966.95. UK's benchmark index FTSE 100 rose 31.62 points or 0.47 percent to close at 6,728.99.

Meanwhile, Germany's benchmark index DAX went up 160.77 points or 1.61 percent to end at 10,142.01. French benchmark index CAC 40 rose 49.63 points or 1.15 percent to end at 4,379.76.