One of the best performers on the STOXX 600 index was beleaguered automaker Volkswagen, closing up 6.2 percent, despite a report in Die Welt newspaper on Monday, which said the company would have to recall 2.46 million cars fitted with the illegal emission control software in Germany alone.
Shares of German airline Lufthansa closed up 1.4 percent after the company came to the end of a long-running dispute with staff over pay. On Saturday, the airline signed an agreement with services union Verdi on pay for around 33,000 personnel.
On London's FTSE index, one of the best performers was housebuilding company Taylor Wimpey, finishing up over 3 percent. The worst performer was Aberdeen Asset Management, closing down 4.6 percent, after news emerged of a 12.5 percent fall in assets as investors pulled money out of its emerging market funds, Reuters reported.
British miner, BHP Billiton pared losses during trade but closed 1.3 percent lower, after Brazil announced plans to sue the owners of the Samarco iron ore miner, BHP and Vale, for $5.2 billion in damages.
Despite this, other mining companies were sharply higher, including Glencore, up 5.2 percent, while Antofagasta and Anglo American both closed up over 2 percent.
Shares in Dutch insurer, Delta Lloyd, slipped to the bottom of the STOXX 600, slipping 10 percent after the company announced a 1 billion euro ($1.05 billion) rights issue to boost its capital ratio and said it would pay no final dividend in 2015.