Stock indices traded higher on speculation the European Central Bank (ECB) will add further stimulus measures. Analysts expect that the ECB President Mario Draghi will announce on Thursday a 550 billion-euro bond-buying programme.

European stocks also benefited from the better-than-expected ZEW economic sentiment index from the Eurozone. Germany's ZEW economic sentiment index increased to 48.4 in January from 34.9 in December, exceeding expectations for a rise to 40.1.

Eurozone's ZEW economic sentiment index rose to 45.2 in January from 31.8 in December, beating expectations for a gain to 37.6.

Indexes on the close:

Name Price Change Change %

FTSE 100 6,620.1 +34.57 +0.52%

DAX 10,257.13 +14.78 +0.14%

CAC 40 4,446.02 +51.09 +1.16%