European stocks closed lower Monday, as analysts said a surging euro squashed an early rally that had been sparked by an easing in recent trade-related tensions.

U.S. stocks on Monday recorded their largest one-day percentage gains since the summer of 2015, with major indexes recouping nearly half of their losses from last week. While the rally coincided with the reports that the U.S. and China are conducting behind-the-scenes talks to avert a global trade war, some analysts noted that the bounce was technical, rather than driven by fundamentals or sentiment.

Asia-Pacific stocks added to their start-of-week rebound early Tuesday, following a 3% surge on Wall Street as worries about global trade fights eased.