European stock markets closed higher on Monday after Italian Prime Minister Matteo Renzi lost a referendum to reform the country's constitution.

Europe's leading Blue-chip index, EURO STOXX 50 rose 37.62 points or 1.25 percent to settle at 3,052.75. UK's benchmark index FTSE 100 rose 16.11 points or 0.24 percent to close at 6,746.83.

Meanwhile, Germany's benchmark index DAX rose 171.48 points or 1.63 percent to end at 10,684.83. French benchmark index CAC 40 went up 45.50 points or 1 percent to end at 4,574.32.