Stock indices closed higher on Greek plans to renegotiate its debt. The new Greece government outlined its plans to renegotiate the terms of its bailout, retreating from demands for a debt haircut. Greek Finance Minister Yanis Varoufakis has proposed debt swaps.

Eurozone's producer price index dropped 1.0% in December, missing expectations for a 0.7% decrease, after a 0.4% decline in November.

Markit's and the Chartered Institute of Purchasing & Supply's construction purchasing managers' index (PMI) for the U.K. rose to 59.1 in January from 57.6 in December, beating expectations for a decline to 56.9.

Indexes on the close:

Name Price Change Change %

FTSE 100 6,871.8 +89.25 +1.32 %

DAX 10,890.95 +62.94 +0.58 %

CAC 40 4,677.9 +50.23 +1.09 %