In other news, London Stock Exchange (LSE) shareholders voted in favor of merging with Deutsche Boerse on Monday. The deal is expected to complete in the first quarter of 2017. Shares of both LSE and Deutsche Boerse closed more than 1 percent down on Monday.
Europe's best-performing stock sector was basic resources, boosted by the sharp price rise in silver, which crossed $21 for the first time in two years on Monday. The move helped precious metal miners Fresnillo and Randgold Resources rally, closing up around 7.7 and 4.4 percent respectively. Glencore, Antofagasta and ArcelorMittal also closed sharply higher.
Auto stocks underperformed, ending 2 percent down, after Kepler Cheuvreux cut its price target on a host of European automakers. Valeo, Peugeot Citroen, Renault, Porsche and BMW received price cuts and ended trade 1.5 percent lower or more.
Shares of Volkswagen closed 2 percent down after the company's chief executive rejected compensation calls for European customers in the wake of the emissions scandal.
In Asia stock markets closed higher overnight. The Australian federal election over the weekend failed to produce a clear winner or outright majority, raising the prospect of prolonged political uncertainty.
Wall Street was closed on Monday for the U.S.'s Independence Day holiday.
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