European stock markets settled higher on Thursday, after the European Central Bank said it would continue buying government bonds through next year, but at a lower amount each month beginning in April.

Europe's leading Blue-chip index, EURO STOXX 50 rose 43.55 points or 1.39 percent to settle at 3,185.79. UK's benchmark index FTSE 100 rose 29.32 points or 0.42 percent to close at 6,931.55.

Meanwhile, Germany's benchmark index DAX gained 192.73 points or 1.75 percent to end at 11,179.42. French benchmark index CAC 40 went up 40.76 points or 0.87 percent to end at 4,735.48.