European stocks closed sharply higher on Tuesday, after ECB President Mario Draghi suggested in a speech that the central bank will provide more stimulus — either through new rate cuts or asset purchases — if inflation does not pick up.

Draghi also defended the tools that the organization has available, saying that its asset purchase program still has considerable headroom.

The pan-European Stoxx 600 recovered from an early drop to end the session 1.8% higher at 384.78, marking a one-month high. All sectors and major bourses were in positive territory, with basic resources leading the gains and surging by almost 3%.

Source : CNBC