European stock markets rose in light pre-holiday trading on the coattails of Wall Street gains on renewed confidence in the strength of the US economic recovery, with Frankfurt setting a new record high.
London's benchmark FTSE 100 index gained 1.09 percent to 6,678.61 points and the CAC 40 in Paris added 0.51 percent to 4,215.29 points.
Frankfurt's DAX 30 meanwhile rose 0.94 percent to a record close of 9,488.82 points.
Madrid's IBEX 35 and Milan's FTSE MIB both climbed 0.71 percent.
"At the beginning of the festive week... the DAX is taking out yet another high, still benefiting from last week's Fed's revelations to trim its monthly bonds purchases," said Varengold Bank analyst Anita Paluch.
"Markets continue to edge higher on thin volume as investors build confidence on US growth hopes, shrugging off China’s money market jitters," commented Lee Mumford, a trader at London-based Spreadex.
European indices won strong support last week after the US Federal Reserve boosted confidence in the economic recovery by announcing plans to scale back its vast stimulus programme.
Global investors have broadly welcomed the Fed's decision to reduce its bond-buying by a modest $10 billion a month to $75 billion while pledging to keep interest rates at record lows for the foreseeable future.
The move indicated the central bank is confident the world's number one economy is becoming strong enough to stand on its own feet as it recovers from the financial crisis.
US stocks pushed higher Monday, riding a wave of forward momentum after last week's records, a positive outlook from the International Monetary Fund and a major Apple deal in China.
In midday trading, the Dow Jones Industrial Average was up 0.50 percent to 16,302.91 points.
The broad-based S&P 500 rose 0.55 percent to 1,828.38, while the tech-rich Nasdaq Composite Index jumped 0.90 percent to 4,141.70.
The Dow and S&P 500 closed at record peaks last week after the US Federal Reserve's announcement.
Over the weekend, International Monetary Fund Managing Director Christine Lagarde praised the Fed's move and said the international organisation sees a "much stronger outlook for 2014" in the US economy.
Apple shares bolted 3.1 percent higher after announcing a long-anticipated deal with China Mobile that will give the US company a much bigger entry into the huge Chinese market.
In foreign exchange trading, the European single currency rose to $1.3707 from $1.3671 late in New York on Friday.
The dollar was flat at 104.06 yen.
The euro climbed to 83.77 pence from 83.68 pence. The British pound gained to $1.6362 from $1.6332.
Gold edged up to $1,199 an ounce from $1,195.25 Friday on the London Bullion Market.
Asian stock markets closed higher on Monday following a record lead from Wall Street ahead of the weekend.
Chinese shares picked up after the mainland's central bank last week injected funds into lending markets to calm fears of a cash crunch.
But China's interbank interest rates still surged on Monday, suggesting money market stress remains.
In London, Royal Mail shares traded on the FTSE 100 index for the first time since part-privatisation of the British postal operator.
Its stock ended down 1.7 percent to 581 pence -- valuing the company at about double the amount at the time of its flotation in October.
Shares in Rolls-Royce added 0.5 percent to 1,249 pence despite the engine maker saying that Britain's Serious Fraud Office had launched a formal investigation into alleged bribery linked to the group's overseas operations.
It comes one year after the British company warned that it might be prosecuted over alleged "malpractice" in Indonesia and China after passing on information related to bribery concerns to the office.