The pan-European Stoxx 600 was 1.6 percent higher in early deals with all sectors trading on positive ground. The benchmark rose 1.8 percent to its highest level since early December 2015. The French CAC 40 bourse jumped nearly 4 percent at the start of trading.

Stocks of French banks dominated the top of the European benchmark with Credit Agricole, Societe Generale and BNP Paribas all up by around 10 percent.