Germany's DAX index gained 67.28 points, or 1.73%, to 3,953.31. Bayer was higher after the company said it had formed a marketing partnership with U.S. competitor Schering-Plough. E.ON rose after a UBS analyst raised his recommendation on stock to "buy 1." Infineon Technologies gained after the company said it plans to boost business in China.
In Paris, the CAC 40 index rose 47.79 points, or 1.3%, to 3,725.4. Alcatel was higher after Goldman Sachs raised its earnings forecast for the company. Havas rose after losing the bid for Grey Global to WPP Group.
In Asia, the markets finished higher on Monday. Japan's Nikkei 225 index gained 169.88 points, or 1.53%, to 11,253.11, led by technology stocks. The world's largest maker of chip testing devices, Advantest, rose 4.9% while Sharp added 4.1%. Kyocera rose after it said it would launch a personal handphone system data communication device in China in the coming months.
In Hong Kong, the Hang Seng index rose 135.58 points, or 1.04%, to finish at 13,139.57. Properties and banking names led the gains.