London's FTSE 100 closed around 1.1 percent higher, the French CAC ended around 1.4 percent higher, while the DAX closed just over 1 percent higher.
Other new data on Thursday showed that German exports had recovered in February, and that industrial output had also edged higher.
Meanwhile, London-listed HSBC shares closed almost 3 percent higher, even though the U.K. bank has been ordered to post 1 billion euros in bail to cover a potential fine following allegations that it helped customers dodge tax.
Read MoreFrance sets $1.1B bail in HSBC Swiss tax probe
Plus, clothing brand Burberry saw its shares rise by around 3 percent after speculation that it could be on the receiving end of a takeover bid from the U.S.