European stock markets closed sharply higher on Tuesday after Chinese economic growth data boosted optimism over the global economic outlook and rumours the ECB could step up its monetary stimulus. Europe's leading Blue-chip index, EURO STOXX 50 jumped 64.16 points or 2.14 percent to settle at 2,991.46.

While UK's benchmark index FTSE 100 gained 105.26 points or 1.65 percent to close at 6,372.33.

Germany's benchmark index DAX rose 169.20 points or 1.94 percent to end at 8,886.96. Meanwhile, French benchmark index CAC 40 jumped 90.00 points or 2.25 percent to end at 4,081.24.