Stock indices traded higher on reports that Russia and Ukraine agreed on a ceasefire. Ukrainian President Petro Poroshenko's office said that Russian President Vladimir Putin and Ukrainian President Petro Poroshenko agreed on a "permanent ceasefire". Russia denied that it had agreed to the ceasefire because Russia isn't a party in the conflict. But Russia and Ukraine discuss how to resolve the conflict.

The speculation that the European Central Bank (ECB) will add further stimulus measures also supported the markets. The ECB will released its interest rate decision on Thursday.

Eurozone's final service purchasing managers' index fell to 53.1 in August from 53.5 in July.

German final service purchasing managers' index declined to 54.9 in August from 56.4 in July.

French final service purchasing managers' index decreased to 50.3 in August from 51.1 in July.

Current figures:

Name Price Change Change %

FTSE 100 6,879.9 +50.73 +0.74%

DAX 9,623.77 +116.75 +1.23%

CAC 40 4,428.42 +50.09 +1.14%