Meanwhile, shares of energy companies underperformed, as oil prices continued sliding on Monday. The commodity has lost around a third of its value since July.
Read MoreOil tumbles after Morgan Stanley cuts forecast
Sentiment in Europe was fairly cautious after some solid gains on Friday. However, Peter Sullivan, head of European equities at HSBC, told CNBC that he expected stock markets to show a slow melt higher for the rest of the year.
"Every month feels like a crisis, but the underlying trend is still upwards," he said.
In other stock news, BHP Billiton closed around 2 percent lower after the mining firm revealed more details on its plan to spin off its assets in the southern hemisphere.
Shares of FTSE 100-listed Hargreaves Lansdown slipped over 4 percent, before paring some losses, after announcing the resignation of financial director Tracey Taylor.