European markets followed their Asian counterparts higher on Monday after China's central bank on Sunday lowered the reserve requirement ratio (RRR) for all banks by 100 basis points. The wider-than-expected cut was the second reduction in two months, as the world's second-largest economy attempts to combat slowing growth.
Read MoreWhy China's RRR cut reeks of desperation
The news also saw U.S. stocks gains more than 1 percent early during Wall Street trading.
Back in Europe, Volkswagen was the only stock on the DAX to close in negative territory. Shares ended down around 1.9 percent, in the wake of a dramatic confrontation between Chairman Ferdinand Piech and senior board members last week.
Meanwhile, shares of Telenet Group Holdings closed around 5.7 percent higher after reports that it will acquire BASE Company from Dutch firm KPN for $1.43 billion. Shares of the KPN closed around 3.1 percent higher.
British-based Victrex also posted gains, finishing up around 2.3 percent, after an analyst upgrade from BNP Paribas.