Meanwhile in the U.K., investors reacted on Thursday after Chancellor of the Exchequer, George Osborne, said the U.K. government would start selling its stake in RBS in the coming months. Shares of RBS closed around 1.9 percent higher.
The U.K. government has also sold part of its stake in the Royal Mail, raising £750 million ($1.6 billion). The government said it had completed the sale of its 15 percent stake via a share placing at 500 pence a share. Shares in the firm tumbled to close down around 4.5 percent, at the bottom of the FTSE 100.
Read MoreRBS share sale: What could put off investors?
Across the Atlantic, U.S. stocks traded slightly higher on Thursday as investors cheered a good retail sales report.
In Asia, equity markets in China lagged behind peers on Thursday, as investors awaited a raft of monthly indicators, including May retail sales and industrial production, that may shed light on the health of the world's second-largest economy.
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