The pan-European Euro Stoxx 600 closed up 0.8 percent provisionally with almost all sectors in positive territory.

The Italian index was the top performing market in Europe, rising during afternoon trade to close up 3.5 percent. Italian Finance Minister Giovanni Tria, speaking to a local newspaper over the weekend, reaffirmed his government's commitment to the euro. Italian banks Intesa Sanpaolo, UniCredit and Monte Dei Paschi all closed up over 6 percent. Italian insurers Poste Italiane and Generali also pushed higher, with the sector finishing trade up 1.3 percent.

Banking stocks led the way among Europe's business sectors more broadly, closing 1.9 percent in the black as traders expect further monetary tightening from central banks this week. The Federal Reserve is due to announce its latest rate decision Wednesday and the European Central Bank is scheduled to start preparing the end of monetary stimulus Thursday.

Meanwhile, automakers were the only sector to close negatively, down 0.3 percent. Daimler closed 0.9 percent lower, trimming losses made earlier in the session. This followed a German newspaper report which said that up to 1 million vehicles contain an emissions cheating device. In a response to CNBC's request, Daimler declined to comment on the article but did say that it is co-operating fully and openly with the Department of Transportation.