European markets closed higher Thursday, after fluctuating for much of the session, with investors monitoring the coronavirus outbreak and digesting new policy announcements from the European Central Bank (ECB) and the Bank of England (BOE).

The pan-European Stoxx 600 closed up 2.9% after rebounding either side of the flatline throughout the day. Telecoms stocks jumped 5% to lead gains while basic resources fell 0.4%.

The Bank of England announced another surprise interest rate cut on Thursday afternoon and ratcheted up its bond-buying program, in an effort to offset the economic impact of the coronavirus outbreak.

This came after the European Central Bank announced a new "Pandemic Emergency Purchase Programme" on Wednesday night that will use 750 billion euros to purchase securities to help support the European economy.

"The ECB will ensure that all sectors of the economy can benefit from supportive financing conditions that enable them to absorb this shock," the central bank said in a release. "This applies equally to families, firms, banks and governments. The Governing Council will do everything necessary within its mandate."