European stock markets closed higher on Thursday after the U.S. Federal Reserve announced a 25 basis point rate increase and opened the door to three hikes next year.

Europe's leading Blue-chip index, EURO STOXX 50 went up 38.03 points or 1.18 percent to settle at 3,249.74. UK's benchmark index FTSE 100 went up 49.82 points or 0.72 percent to close at 6,999.01.

Meanwhile, Germany's benchmark index DAX went up 121.56 points or 1.08 percent to end at 11,366.40. French benchmark index CAC 40 gained 49.99 points or 1.05 percent to end at 4,819.23.