HSBC, Europe's largest bank by assets, posted another fall in pre-tax profit on Monday, as the bank continues the second phase of its turnaround plan. It shares closed up around 1.0 percent.
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Meanwhile, shares of Dutch company PostNL closed about 2.0 percent higher after it posted a 3.0 percent rise in second-quarter revenue on Monday.
On the data front, a June producer price index (PPI) for the euro zone showed a rise for the first time this year. Energy prices were the catalyst for the move, according to the official figures.
In addition, a purchasing managers' index (PMI) for the U.K. construction sector showed housebuilding grew at its fastest rate since 2003 last month.
U.S. stocks were little changed on Monday, despite companies including Berkshire Hathaway reporting results that beat expectations
Asian equity markets ended mixed on Monday as investors brushed off weak economic data from China over the weekend which showed growth in its services sector hit a six-month low in July.