European stocks were trading higher in early Monday trades as last week's positive German data continued to boost sentiment, although gains were capped amid speculation that the U.S. Federal Reserve may scale back asset purchases.
Trading was light as markets in London remained closed for a bank holiday.
Data released on Friday showed Germany's Ifo index of business climate increased during May for the first time in three months. The index rose to 105.7 from 104.4 in April, raising hopes of economic growth in the continent's largest economy.
Stocks on the move
Among financials, French lender BNP Paribas SA added 1.5% while Credit Agricole SA was 1.2% higher.
German banks Deutsche Bank AG gained 1.4% while Commerzbank AG bounced 3.5%.
Also in Germany, enterprise software provider SAP AG enhanced over 2% after ending talks to take over Jive Software Inc.