The pan-European Stoxx 600 ended the day's trading up 0.91 percent, with major bourses and all sectors bar technology in positive territory.

The construction and material sector led the gains, up nearly 1.6 percent, followed by the autos and chemicals sectors. Europe's auto stocks, which have a large exposure to the U.S., rose 1.56 percent Monday afternoon after the U.S. Senate passed a tax package delivering significant fiscal stimulus.



Looking at individual stocks, Switzerland-based fintech firm Temenos led the Stoxx 600, followed by U.K. media company Daily Mail and Italian eyewear firm Luxottica.

Denmark's largest insurance firm Tryg said it had agreed to buy unlisted competitor Alka Forsikring for $1.31 billion on Monday. The company said it was looking to bolster its presence in the property and casualty insurance markets. Tryg's shares closed over 3 percent higher.



Meanwhile, Dialog Semiconductor slumped to the bottom of the benchmark Monday, with its shares ending the day's trading over 24 percent lower. The German microchip maker said its top customer Apple could soon opt to build its own power-management chips instead. However, Dialog Semiconductor said it should not lose its Apple power chip business in 2018.