European stocks rallied on Monday after Chinese markets soared on hopes the world's second-largest economy will lead a recovery from the coronavirus crisis.
The Shanghai Composite Index jumped as much as 5.71 percent, marking the biggest advance since 2015.
A slew of positive data released today also boosted hopes for a quick economic recovery.
The pan European Stoxx 600 climbed 1.38 percent to 370.46 after declining 0.8 percent on Friday.
The German DAX and France's CAC 40 index rose about 1.6 percent, while the U.K.'s FTSE 100 was up as much as 1.9 percent ahead of Chancellor Rishi Sunak's mini-Budget on Wednesday.
Sonova Holding surged 5.1 percent. The Swiss provider of hearing solutions announced job cuts and said it expects a partial recovery in the first-half.
Energy stocks were gaining ground, with BP Plc climbing 2.3 percent and Royal Dutch Shell adding 2.1 percent.
Housebuilder Persimmon surged 6.6 percent, Taylor Wimpey jumped 5.9 percent and Barratt Developments added 8.4 percent on reports that British Finance Minister Rishi Sunak plans to raise a property tax threshold.
Aviva soared 4.2 percent as it announced the appointment of Amanda Blanc as Chief Executive Officer with immediate effect.
Lloyds Banking Group rose 1.6 percent. Robin Budenberg CBE has been selected to succeed Lord Blackwell as Chairman.
Automakers BMW, Daimler, Volkswagen, Renault and Peugeot climbed 2-3 percent on signs that the economic recovery from the coronavirus crisis is building up steam.
On the data front, Eurozone investor confidence improved in July, survey results from the behavioral research firm Sentix showed. The investor confidence index improved to -18.2 in July from -24.8 in June.
Retail sales activity also rebounded strongly in the euro area in May, as lockdown restrictions were eased in most countries.
Sales in the 19 countries sharing the euro zone rose by 17.8 percent in May from April, Eurostat data showed.
A survey showed the U.K. construction industry surged back to growth in June. The closely followed IHS Markit/CIPS construction purchasing managers' index (PMI) surged to a reading of 55.3 last month, from 28.9 in May.
German factory orders advanced 10.4 percent month-on-month in May, reversing a sharp revised 26.2 percent fall posted in April, official data revealed. Economists had forecast a monthly growth of 15 percent.
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