European stock markets are trading higher on Friday in a surprisingly relevant session highlighted by a string of significant events in the region's banking sector in the final hours of the year.

Europe's leading Blue-chip index, EURO STOXX 50 rose 7.15 points or 0.22 percent to trade at 3,276.66. Germany's benchmark index DAX gained 11.27 points or 0.1 percent to trade at 11,467.37. French benchmark index CAC 40 gained 5.76 points or 0.12 percent to trade at 4,840.39.

On the other hand, UK's benchmark index FTSE 100 lost 6.06 points or 0.09 percent to trade at 7,057.62.

On Thursday, European stock markets closed mixed. Europe's leading Blue-chip index, EURO STOXX 50 lost 1.24 points or 0.04 percent to settle at 3,269.51. Germany's benchmark index DAX lost 12.54 points or 0.11 percent to end at 11,456.10.