Major European bourses closed the first day of trading in October largely in the green, though Spain's IBEX was down 1.21 percent on the back of growing political concerns following Sunday's unofficial independence referendum in the region of Catalonia.
The pan-European Stoxx 600 closed up 0.37 percent with most sectors in positive territory.
The Catalan independence referendum has created a tumult in the southern European country. The regional government said that 90 percent of people voted in favor of independence, while the national authorities said the referendum was illegal. Catalan officials said that more than 800 people were injured during clashes with the police, which tried to prevent people from voting.
More broadly, European stocks kept their positive momentum after fresh data releases. Manufacturers in the euro zone reported their most productive month in September since 2011. IHS Markit final manufacturing purchasing managers' index hit 58.1 last month, having reached 57.4 in August.
"The euro zone manufacturing sector is in fine form, and likely continued to provide firm support for GDP growth in the third quarter," Claus Vistesen, chief euro zone economist at Pantheon Macroeconomics said in a statement.
Furthermore, unemployment data in the euro zone remained at their lowest level seen since February 2009. In August, there was 9.1 percent of unemployed people in the region, down from 9.9 percent a year ago.
Travel and leisure stocks were among the best performers Monday. This followed news that the British airline Monarch had ceased flights amid losses. One of the beneficiaries of this move, as well as competitor Ryanair's recent flight cancellations, EasyJet closed at the top of the Stoxx 600, up 5.18 percent.
Ubi Banca also closed near the top of the Stoxx 600, up 4.33 percent, following a rating upgrade from Societe Generale.
U.K. housebuilders topped the European benchmark Monday after Prime Minister Theresa May promised Sunday a £10 billion ($13.34 billion) extension to the government's Help to Buy scheme. Barratt developments rose 4.23 percent.
The French penmaker Bic dropped nearly 10 percent after cutting its sales forecast for this year.