European markets closed slightly higher Monday as investors weighed prospects for a global monetary policy response to mitigate the economic impact of the coronavirus.

The pan-European Stoxx 600 closed up by 0.1% provisionally, having earlier risen as much as 2% in what was a choppy trading session. Most sectors and major bourses were in positive territory.

Hopes have been rising that central banks could introduce stimulus measures to lessen the impact of the outbreak on the global economy, following a sharp increase in coronavirus cases outside of China, including in the U.S and Europe. However, the positive market reaction on Monday was short-lived.

In total, there have now been more than 89,000 cases of the virus confirmed globally and over 3,000 deaths. The U.S. reported its second death from the virus and New York reported its first case Sunday.

Global stock markets saw heavy losses last week, experiencing the worst declines since the 2008 financial crisis. On Wall Street, equities rebounded from the sell-off on Monday, with the Dow Jones Industrial Average up about 600 points.

The uptick in sentiment has been driven in part by comments from Bank of Japan (BOJ) Governor Haruhiko Kuroda, who said the BOJ will "strive to stabilize markets and offer sufficient liquidity via market operations and asset purchases."