European stocks finished with firm gains on Wednesday, breaking a seven-session losing run. The move tracked advances on Wall Street Tuesday and Wednesday, as U.S. equity markets managed to rally following the biggest global selloff in years. Bourses also got a lift from news that German Chancellor Angela Merkel's party and its former center-left partner agreed on a formal deal to set up a governing coalition for Europe's largest economy.

European stocks closed higher Wednesday, as markets worldwide attempted to shake off the major volatility seen in recent sessions. The pan-European Stoxx 600 closed at 2.06 percent, with all sectors and major bourses in positive territory.

Asian stocks vacillated Thursday as higher market volatility continued and investors struggled with what to make of the past week's global market selloff. Indexes in Hong Kong and China turned negative ahead of their midday break, with Shanghai's stock benchmark also turning negative for the year as large-cap stocks declined.