European stock markets rose on Monday as traders focused on Greece's efforts to strike a bailout deal, while betting on the outlook for US interest rates.
Frankfurt's DAX 30 index rallied 1.42 percent to stand at 12,036.35 points in mid-afternoon deals, while the CAC 40 in Paris rose 0.86 percent to 5,076.64 points.
London's benchmark FTSE 100 index climbed 0.31 percent to 6,876.36 points compared with Friday's close.
US stocks opened higher on new activity in health services and energy sectors.
Five minutes into trading the Dow Jones Industrial Average was up 0.33 percent, while the tech-rich Nasdaq Composite Index rose 0.62 percent.
The euro fell to $1.0844 from $1.0890 late in New York on Friday.
"Despite the short week in Europe (owing to Easter), there is still plenty on the agenda to move markets, with Greek reforms under scrutiny, Chinese monetary easing more likely and employment data in the US later this week giving investors further insight as to whether the June or September will herald the start of US rate rises," said Rebecca O'Keeffe, head of investment at stockbroker Interactive Investor.
Greek Prime Minister Alexis Tsipras said in remarks published Sunday that he hoped key talks with international creditors would yield a "happy ending" in the standoff over the debt crisis.
Experts from the IMF and the EU are scrutinising a list of proposed reforms put forward by Athens to try to unblock a new 7.2 billion euro ($7.81 billion) tranche of EU-IMF loans and avoid a debt default.
"Increasing Greek risk is being brushed off just as more of an inconvenience than an actual concern," said Craig Erlam, senior market analyst at Oanda trading group.
"This could all change if things take a significant turn for the worse but I just don’t think people are buying into the 'Grexit' any more. A deal is always done and it would be truly bizarre if the same didn't happen this time."
The governor of the Greek central bank last week ruled out the country's exit from the eurozone.
"Grexit is not an option for Greece, it is not an option for the eurozone. It is not going to happen," Yannis Stournaras said.
- China stimulus hopes -
Elsewhere on Monday, Asian markets mostly rose after Wall Street's gains at the end of last week, while Hong Kong and Shanghai were boosted by hopes for more Chinese economic stimulus.
Investors took their cue from New York, where a four-day losing streak came to an end Friday despite figures showing the US economy grew at a slower pace than some expected in the last three months of 2014.
Asian stocks were supported also by comments from the head of the People's Bank of China suggesting it could announce further monetary easing measures to boost the economy.
"European equities are starting out the new trading week on a positive note receiving a boost from firmer Asian markets overnight and optimism that the Fed will raise rates gradually later this year," said Markus Huber, senior analyst at brokers Peregrine & Black.
"Renewed hopes that China will do more in the months ahead to boost its economic growth is giving the entire Asian region a lift... Furthermore comments by Fed Chief Janet Yellen last Friday evening have soothed fears that the Fed might feel forced to raise rates in a very aggressive way."