Retail stocks led the pack on Wednesday in European trade.
Shares in Sainsbury's surged nearly 14 percent by the close, after the British supermarket chain said that its full year profit is expected to be ahead of market consensus. The announcement lifted other names in U.K. space, including Tesco and Morrisons, which both gained over 6 percent.
Shares in Glencore surged for a second consecutive day, closing around 14 percent higher on Wednesday after the London-listed miner said it had taken "proactive steps" to withstand commodity market conditions and had no solvency issues. This follows a rout in the stock that meant it closed September down 38 percent on the month.
On Wednesday, Glencore's rally boosted other names in basic resources. Rio Tinto got a 2.8 percent bump, while BHP Billiton closed 2.7 percent up.
Oil companies also ouperformed, with SBM Offshore closing up 4 percent and Statoil up 3.2 percent.
Auto names were significantly higher after China said it has halved sales tax on small cars, a move likely to benefit the likes of embattled German carmaker Volkswagen.
On Wednesday, Volkswagen UK said around 1.2 million vehicles in Britain were affected by the emissions software scandal. In addition, VW-owned Porsche named Oliver Blume as its new chairman of the executive board. Shares in Volkswagen closed 2.7 percent up.
Other carmakers also got a boost, with Peugeot Citroen and Germany's BMW closing up 6.4 and 3.7 percent, respectively.