Investors have begun the week cautiously, reluctant to place big bets before meetings of policymakers in the US, the euro zone and the UK in the coming days.
European Central Bank President Mario Draghi last week promised that the central bank, within its mandate, was "ready to do whatever it takes to preserve the euro," adding, "and believe me, it will be enough."
Germany's Angela Merkel and France's Francois Hollande echoed Draghi's sentiment. While that still provided support for the stocks in the region today, the euro gave up some of last week's gains as it weakened 0.6 per cent against the greenback.
Europe's Stoxx 600 Index ended the day with a 1.6 per cent climb from the previous close.
As a sign of the continuing tough times for global banks, HSBC has set aside US$700 million to cover fines and other costs after a US Senate report criticised it this month for letting clients shift funds from dangerous and secretive countries, notably Mexico.