Germany's DAX index rose 38.32 points, or 0.96%, to 4,033.28 as investors looked for oversold cyclical and financial stocks. The European August PPI rose 0.4% and European retail trade fell 1.3%.
In Paris, the CAC 40 index gained 36.9 points, or 0.99%, to 3,767.06.
In Asia, the markets finished with hefty gains on Monday, powered higher by a sharp rally on Wall Street on Friday and led by tech stocks. Japan's Nikkei 225 index jumped 294.46 points, or 2.68%, to 11,279.63.
In Hong Kong, the Hang Seng index climbed 239.22 points, or 1.82%, to 13,359.25 on gains in financials, properties, and utility names.