Europe Markets

Europe closes sharply higher; all eyes watch Greece

Europe closes sharply higher; eyes on Greece

European stocks closed sharply higher on Friday after investors took heart from a rebound in China and reforms proposals from Greece.

The pan-European Stoxx 600 ended the day more than 2 percent higher, and on the week closed 1.5 percent higher.

London's FTSE 100 index traded to close up around 1.4 percent, while France's CAC 40 and Spain's IBEX 35 both ended higher above 3 percent. The German DAX closed 2.9 higher.

Read MoreMarkets cheer Greece, China: So is the drama over?

Markets ended the day strongly in positive territory, following news that Greece had submitted economic reform proposals and asked for 53.5 billion euros ($59.4 billion) as part of a new bailout package from its creditors. The Greek parliament will vote on the measures on Friday and on Saturday, euro zone finance ministers will have their say.

At Europe's close on Friday, U.S. stocks surged as a second day of recovery in Chinese stocks and hopes of a resolution in Greece boosted investor sentiment.

Europe banks surge; Autos speed ahead

European banks saw stock price surge on Friday after coming under pressure earlier this week over concerns about exposure to the Greece crisis. Amid growing hopes of a deal, BMPS finished at the top of the Stoxx 600, up over 8 percent, while BNP Paribas closed around 4 percent.

Auto stocks were also trading higher, with Peugeot Citroen and Renault over-performing, finishing around 3.8 and 3 percent respectively after the Brazilian government said it plans to boost vehicle imports.

German web firm United Internet surged over 7 percent before paring slight gains to close around 6.4 percent, after it acquired Polish web hosting company

Shares in popped, closing up 3.2 percent after Ryanair agreed to sell its 29.8 percent stake in Aer Lingus, to the company.

There were just a handful of stocks in negative territory on Friday, including chipmaker ARM down 2.9 percent.

Asia rebound

Meanwhile in Asia, stock markets also advanced, as the market rebound in China stayed on course for a second consecutive session.

In the previous session, most regional bourses staged a turnaround in the afternoon session after fresh regulatory support from Beijing put a stop to the bleeding in the mainland markets. China's Shanghai Composite closed up 4.5 percent, but remains 34.85 percent off its peak on June 12.

Read MoreChinese selling homes to cover stock losses: local media

What to expect next week

Week look ahead