Stock indices closed higher on signs the ECB will add further stimulus. European stocks reached their highest level since 2008. European Central Bank Executive Board member Benoit Coeure said on Friday in a newspaper interview that the bond-buying programme must be big to be efficient.

Eurozone's consumer price index dropped 0.1% in December, beating expectations for a 0.2% decline, after a 0.2% decrease in November.

On a yearly basis, Eurozone's consumer price inflation remained unchanged at 0.2% in December, in line with expectations.

Eurozone's consumer price inflation excluding food, energy, alcohol and tobacco declined to an annual rate of 0.7% in December from 0.8% in November. Analysts had expected inflation to remain unchanged.

Germany's final consumer price index was flat in December, in line with expectations.

On a yearly basis, German final consumer price index remained at 0.2% in December, in line with expectations.

Indexes on the close:

Name Price Change Change %

FTSE 100 6,550.27 +51.49 +0.79%

DAX 10,167.77 +135.16 +1.35%

CAC 40 4,379.62 +56.42 +1.31%