The index recovered from a series of losses recorded last week, after falling 3.6%.
The European stock market ignored the increase in infections with the Coronavirus, and recorded a sharp rise on Monday, as investors bought shares of the banking sector, which hit a record low last week, and supported by data indicating a recovery in the Chinese economy.
The European banking index jumped 5.6% in the first session of gains in 8 days.
Shares in the European banking sector, which were hit by factors including a decline in borrowing costs around the world, an increase in bad loans due to the economic slowdown and the dirty money scandal, had been ostracized by investors, making it the worst performance this year, with a drop of 42%.
Shares in the European auto and manufacturing sectors, which depend on Chinese demand, rose more than 3.5%.
The pound rose more than 1% on Monday, supported by hopes that Britain might reach a trade agreement with the European Union by October or at least avoid a rough exit from the bloc.
The European Union and Britain launched a crucial week of talks on Monday, but both cautioned that a deal was still a bit far off.
The sterling jumped 1% against the greenback to $ 1.2863 by 1500 GMT, after earlier hitting its highest level in a week at $ 1.2930.
The sterling rose 0.7% against the European currency to 90.61 pence per euro, after hitting a 20-day peak at 90.26 pence.