Autos was Europe's top performing sector, closing up 1.33 percent overall, with German and French carmakers leading the way. Volkswagen rose 4.19 percent, after news emerged over the weekend that the manufacturer would invest 22.8 billion euros ($26.9 billion) in its main car brand over the course of 2018 to 2022. Porsche, which is owned by Volkswagen, popped 4.48 percent.
Health care stocks ended on a positive note Monday following news that President Donald Trump is not going to push for a repeal of Obamacare in a tax bill. The sector was also boosted by news that Roche successfully concluded trials against lung cancer. The stock jumped 5.87 percent on the news.
Media stocks posted solid gains with German broadcaster ProSiebenSat.1 leading the pack. Shares of the firm rose 3.22 percent, after news emerged that the broadcaster's CEO, Thomas Ebeling, would be leaving the company in February.
On the other hand, insurance stocks struggled to post gains by the close — with financials also having come under pressure during trade — on growing doubts over U.S. plans to update the tax system. Despite the uncertainty, markets in the U.S. ticked higher by Europe's close, as investors digested more individual stock news, while awaiting developments surrounding tax.
Looking at individual stocks, Altice jumped over 9 percent before paring gains to close up 5.2 percent on Monday — after denying market speculation that it was preparing to raise capital.
Elior Group, meanwhile, sunk to the bottom of the STOXX 600, tumbling 7 percent after Citigroup, Kepler Cheuvreux and Natixis cut their price targets on the stock.