European stocks close: stocks closed higher on comments by the ECB President Mario Draghi

Stock indices closed higher on comments by the European Central Bank (ECB) President Mario Draghi. He presented new inflation and growth forecasts at a press conference on Wednesday. The ECB forecasts an annual inflation at 0.3% in the Eurozone in 2015, up from the previous estimate of 0.0%, 1.5% in 2016 and 1.8% in 2017.

The central bank expects the annual real GDP to expand at 1.5% in 2015, at 1.9% in 2016 and at 2.0% in 2017, down from the previous estimate of 2.1%.

Draghi noted that the central will continue its asset buying programme until September 2016 or as long as needed.

The Greek debt crisis remained in focus. Draghi said at a press conference on Wednesday that he wants Greece to stay in the Eurozone, "but it has to be a strong agreement".

Draghi declined to comment on the debt talks between Greece and its creditors.

The European Commission President Jean-Claude Juncker meets Greek Prime Minister Alexis Tsipras in Brussels on Wednesday. Juncker is expected to provide details of a proposal designed to avert a Greek default.

Meanwhile, the economic data from the Eurozone was better than expected. Eurozone's unemployment rate fell to 11.1% in April from 11.2% in March. It was the lowest level since February 2012.

March's figure was revised down from 11.3%.

Analysts had expected the unemployment rate to remain unchanged at 11.2%.

Retail sales in the Eurozone rose 0.7% in April, in line with expectations, after a 0.6% fall in March. March's figure was revised up from a 0.8% drop.

The increase was driven by higher food, drinks and tobacco sales, which rose 1.3% in April.

Gasoline sales were up 0.6% in April, while non-food sales increased 0.3%.

On a yearly basis, retail sales in the Eurozone rose 2.2% in April, beating forecasts of a 2.0% gain, after a 1.7% increase in March. March's figure was revised up from a 1.6% rise.

The annual rise was driven by non-food sales, which gained 3.3%, and by gasoline sales, which increased 3.2%.

Markit's and the Chartered Institute of Purchasing & Supply's services purchasing managers' index (PMI) for the U.K. fell to 56.5 in May from 59.5 in April, missing expectations for a fall to 59.2. It was the lowest level since December 2014.

A reading above 50 indicates expansion in the sector.

The decline was driven by a lower increase in new business.

Indexes on the close:

Name Price Change Change %

FTSE 100 6,950.46 +22.19 +0.32%

DAX 11,419.62 +90.82 +0.80%

CAC 40 5,034.17 +29.71 +0.59%