The pan-European STOXX 600 index closed around 0.7 percent higher, with all sectors and major bourses in positive territory.
The DAX was boosted by shares of Deutsche Bank, which closed over 2 percent higher, bouncing back after several sessions of heavy selling. This came after it was asked to pay a settlement by the U.S. Department of Justice and speculation that it was seeking help from the German government.
U.S. stocks opened slightly higher on Wednesday, before paring gains as several U.S. Federal Reserve spoke and a meeting of major oil-producing countries concluded.
On Wednesday, oil prices rose in early trade before declining
Meanwhile, Petrofac shares rallied as much as 4 percent after Goldman Sachs upgraded its outlook on the firm. Shares closed up 2.7 percent.
Steinhoff saw its shares close 3.9 percent higher, after the retail group announced on Wednesday that it was planning a capital increase.
ICAP shares lost nearly 4 percent in early deals after a rating downgrade from Citigroup. Its shares closed 3.6 percent lower on the day.