Stock indices closed higher as shares of banking sector increased. Shares of banking sector rose in news that the European Central Bank (ECB) was discussing with the Italian government about buying bad loans from Italian banks. The European Central Bank (ECB) President Mario Draghi said later on Monday that the central bank has no plans to buy bad loans from Italian banks.

Draghi also repeated that the ECB will review its stimulus measures at it monetary policy meeting in March. It downward risks to price stability increase, the central bank will be ready to act, Draghi noted.

Market participants eyed the economic data from the Eurozone. Eurostat released its trade data for the Eurozone on Monday. Eurozone's unadjusted trade surplus increased to €24.3 billion in December from €23.6 billion in November.

Exports rose at an unadjusted annual rate of 3.0% in December, while imports increased 3.0%.

Eurozone's adjusted trade surplus declined to €21.0 billion in December from €22.6 billion in November.

Exports fell at an adjusted 0.3% in December, while imports increased 0.8%.

Indexes on the close:

Name Price Change Change %

FTSE 100 5,824.28 +116.68 +2.04 %

DAX 9,206.84 +239.33 +2.67 %

CAC 40 4,115.25 +120.19 +3.01 %