UK stocks : FTSEurofirst 300 up 1.2 pct

The FTSEurofirst 300 closed up 13.82 points, or 1.2 percent, at 1,162.10.

A narrowing trade deficit in the U.S. and data overnight showing growing demand for Chinese exports nurtured hope that the global economy will strengthen.

Meanwhile, European Union leaders ended a bout of uncertainty by reaching an agreement on the bloc's long-term spending plans after more than 24 hours of negotiations.

"The key drivers for the macro recovery in January and the subsequent equity rally appear to be holding and as a result we have seen a lot of the week's pullback eradicated," Adam Seagrave, equity Trader at Saxo Bank, said.

The euro zone blue chip index rose 1.3 percent, finding support around its 200-week moving average (MA) at 2,616. The index has not closed below its 200-week MA since mid-December.

The brightening outlook for the global economy helped lift demand for miners, which rose 1 percent, but it was the banks, up 2.8 percent, which were the main drivers.

French bank Credit Agricole gained 6.9 percent after brokerage Exane upgrades it to "outperform," citing the significant discount it trades at relative to peers.

Norwegian bank DNB rose 4.6 percent, building on a 7 percent gain in the previous session after having delivered on its dividend promise, after UBS, Nomura and Credit Suisse produced upgrades on the stock.

The sector as a whole regained most of the losses of the last four

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