The Latest: European markets poised to close higher

Friday looks set to be an up-day in European stock markets, providing a welcome respite for many traders at the end of what's been an extremely volatile week.

Deutsche Bank's gains on Friday come amid a broad-based rise in bank shares, which have likewise taken a hit in the global market turmoil this year.

The news that U.S. retail sales rose, albeit modestly, in January has helped to further ease tensions in financial markets.

Wall Street is set to track European stock markets higher when it opens for trading, at the end of a tumultuous week that has stoked talk of a full-blown crash.

Confidence remains low, however, that Friday's rebound in stocks and oil prices marks a turning point.

Bank stocks are among the top risers in European markets, led by Germany's Commerzbank, which has announced its first dividend since 2007.

The growth is, however, relatively weak considering the region has been benefiting from low energy costs, an export-boosting drop in the euro's value and monetary stimulus from the central bank.

Jonathan Loynes, chief European economist at Capital Economics, says the downside risks have increased and as a result he thinks the European Central Bank will back "further decisive policy support" at its March meeting.

The increases, seen across Europe, come at the end of what's been a tumultuous week in financial markets with investors fretting over the scale of the global economic slowdown and the ability of banks to weather the storm.