European stock markets closed sharply higher on Wednesday as investors shifted their focus to the European Central Bank's (ECB) upcoming meeting, where they expect further monetary stimulus to be announced.

Europe's leading Blue-chip index, EURO STOXX 50 gained 41.48 points or 1.34 percent to settle at 3,142.24. UK's benchmark index FTSE 100 gained 122.39 points or 1.81 percent to close at 6,902.23.

Meanwhile, Germany's benchmark index DAX rose 211.37 points or 1.96 percent to end at 10,986.69. French benchmark index CAC 40 rose 62.78 points or 1.36 percent to end at 4,694.72.