European stocks closed higher on Friday on the back of China-U.S. trade talks.

The pan-European Stoxx 600 ended provisionally up by 1.42 percent with clear gains in basic resources and autos on the back of optimism regarding U.S.-China trade talks.

A fresh round of long-term loans from the European Central Bank to euro zone banks is being discussed, ECB board member Benoit Coeure said in New York on Friday.

Coeure added that the euro zone's recent economic slowdown is more pronounced than previously expected. His comments prompted the euro to slide to slide in value versus the dollar.