European markets finished sharply higher on Friday after getting hammered the previous day, as crude oil prices and mining stocks rebounded.
The pan-European STOXX 600 index jumped to close up 2.9 percent provisionally, with all sectors closing higher.
The previous market tumult mean indexes were lower on the week however.
The STOXX 600 is down 4.1 percent since Monday.
A sharp spike in oil prices boosted European equities on Friday. Crude oil prices jumped after comments by an OPEC energy minister sparked hopes of a coordinated production cut.
However, analysts said such a move remained unlikely and that oversupply would persist.
Basic resources stocks performed even better than energy stocks in Europe on Friday. The STOXX sector index closed up 8.7 percent, as metal prices rose.
Anglo American was Europe's best performing stock, closing over 18 percent higher, as investors bought on the dip after the price came under pressure earlier this week.
Glencore jumped 12.3 percent after Deutsche Bank raised its price target for the miner's South Africa-listed shares.
Investors' fears have been stoked in recent days by talk of negative interest rates being introduced by more central banks.
"It is an uncharted territory and no-one know what are the repercussions of this. It is this fear which is giving a birth that perhaps we are going to face the worst market turmoil of all times," Naeem Aslam, chief market analyst at AvaTrade, wrote in a Friday note.
Fears over central bank interest rates and bad loans hit shares of European lenders earlier this week.
However, banks rebounded on Friday thanks to positive earnings and news fromDeutsche Bank. Germany's biggest bank by market capitalization announced it would buy back more than $5 billion in senior debt, sending its shares up 11.8 percent.
Germany's Commerzbank posted fourth quarter net profit in line with analyst expectations, thanks to lower provisions for bad loans; its shares closed 18 percent higher.
Many of the Italian banks — which have been under pressure — rebounded too, though troubled lender Banca Monte dei Paschi di Siena slipped 5.2 percent after larger rival UBI Banca ruled out a tie-up. UBI Banca finished up over 10 percent.
Shares of British aircraft engine maker, Rolls-Royce, surged over 14 percent after it reported underlying pretax profit above analyst expectations, but halved its dividend.
Europe's worst performing stock was video-game maker, Ubisoft. Shares slumped over 9 percent after the company lowered its sales and operating profit targets for fiscal year 2015/16.
Outside of Europe, U.S. equities traded higher on the back of the sharp recovery in oil prices.