- Ukraine and Russia make progress on talks
- IS militants forced out of Mosul dam in Iraq
- Eurozone credit affected by weak French growth, fiscal shortfall
FTSE 100: 0.70%
CAC 40: 1.02%
FTSE MIB: 0.78%
IBEX 35: 0.92%
Stoxx 600: 0.95%
European stocks jumped as Ukraine and Russian officials made progress in talks.
German Foreign Minister Frank-Walter Steinmeier said Ukrainian Foreign Minister Pavlo Klimkin and Russian counterpart Sergei Lavrov had made headway in negotiations in Berlin to ease tensions.
"It's very early days yet but the meeting between the Ukrainian and Russian foreign ministers in Berlin was a promising start," said Alpari UK analyst Craig Erlam.
"The fact that both sides are showing a willingness to find a diplomatic solution to the crisis is a positive development, not just for Ukraine and Russia, but also Europe where the crisis has taken its toll on the economy."
Meanwhile, on Sunday the Ukrainian flag was raised over a police station in Luhansk in a major blow for pro-Russian rebel forces.
In Iraq, Islamic State (IS) militants have been forced out of Mosul dam by Kurdish fighters and Iraqi counter-terrorism forces, according to reports on Monday.
Moody's Investor Service has warned that the Eurozone's credit would be affected by France missing its 2014 budget deficit target of 3.8% of gross domestic target (GDP).
The credit ratings agency said that France's fiscal shortfall and revisions to growth targets illustrated "the continuing challenges facing the euro area and will further test the monetary union's political will to enforce fiscal discipline in a challenging economic environment".
Elsewhere in France, Finance Minister Michel Sapin called on the European Central Bank (ECB) to take action and support growth by forcing the euro lower.
Following data last Thursday showed that GDP stagnated in the second quarter, Sapin told RTL in an interview on Monday that the ECB had responsibilities and that the measures the central bank took must be carried through to the end in order for the "euro to be at a more normal level corresponding with its true value in international markets".
Swedish Match, United Internet
Swedish Match was a high riser after Boersen-Zeitung reported that Scandinavian Tobacco Group Assens A/S is mulling an initial public offering.
United Internet rallied after the online-access and domain provider bought a 10.7% stake in Rocket Internet for €435m.
Commerzbank advanced as Boersen-Zeitung reported that profit margins in Germany's private banking industry would rise.
Neste Oil slumped as the company said production may fall due to damage to the hydrogen plant at its Porvoo refinery.
Rio Tinto gained as the miner said it is reviewing a 53.83% stake in Bougainville Copper.
Deutsche Telekom jumped on reports the phone company may buy cable providers such as Tele Columbus GmbH or Primacom.
The euro fell 0.11% to $1.3386.
Brent crude futures dropped 1.16% to $102.34 per barrel, according to the ICE.