Summary European share prices mostly rose on Monday in light volume deals amid a public holiday in the US.
LONDON: But the luxury goods sector was hit by a gloomy outlook from Swiss group Richemont.
London s FTSE 100 index of top companies gained 0.19 percent to 6,166.12 points in late morning deals, having briefly hit 6,180.27 -- which was the highest intra-day level since May 2008.
Frankfurt s DAX 30 index rose 0.38 percent to 7,731.15 points and in Paris, the CAC 40 index added 0.25 percent to 3,750.87.
In foreign exchange deals, the European single currency eased to $1.3313 from $1.3317 late in New York on Friday. On the London Bullion Market, gold prices decreased to $1,688.29 an ounce from $1,688.50.
Europe s luxury goods sector slid after Richemont -- maker of brands like Cartier and penmaker Montblanc -- said in an update that it was "unclear" how business patterns would develop in the near future, particularly in Asia.
In reaction in Paris, French luxury goods groups LVMH and PPR saw their share prices slide by 1.45 percent and 1.70 percent, to stand at 139.4 euros and 153 euros respectively.
And in London, luxury accessories and handbag maker Burberry shed 1.30 percent to 1,368 pence.
Shares in British publisher Pearson meanwhile dived 3.23 percent to 1,198 pence after it announced that profits would remain flat, ahead of next month s annual results statement.
In Paris, shares in airline Air France-KLM surged by 5.02 percent to 8.50 euros on a recommendation from brokers at Credit Suisse, and shares in Carrefour supermarkets rose by 2.23 percent to 20.67 euros, also on a note from Credit Suisse.
Asian markets were mixed, with Tokyo s Nikkei hit by a stronger yen and profit-taking after last week s rally, while dealers await the outcome of a policy meeting at the Bank of Japan.
Wall Street provided a strong lead, with the Dow and S&P 500 hitting more than five-year highs Friday after Republicans proposed a three-month increase to the US debt ceiling in order to agree a budget and long-term spending cuts.
Tokyo s Nikkei, which hit a 33-month high Friday, fell 1.52 percent. Sydney closed up 0.13 percent, while Seoul ended flat and Hong Kong was also barely changed.
Chinese shares meanwhile rose 0.48 percent, extending Friday s gains after Beijing released data showing the economy grew faster than expected last year.
Policymakers at Japan s central bank on Monday began a two-day meeting that markets widely expect will see them adopt a two percent inflation target and unveil more monetary easing.
The yen has tumbled in recent months -- sending the stock market surging, since Shinzo Abe promised before December s election that he would urge the bank to be more aggressive in its battle to save the economy.
Abe swept to power in the poll and has since moved to bring BoJ policies into line with his new government s position.
Wall Street had rallied on Friday after the Republican offer to increase the nation s borrowing limit while a budget is agreed, providing hope that rival lawmakers will be able to reach a long-term fiscal agreement.
The government is due to reach its limit at some point around the end of February, while politicians also have to agree spending cuts that were put off as part of a fiscal cliff deal agreed at the start of the year.
The Dow index rose 0.39 percent and the S&P 500 added 0.34 percent, with both indexes hitting highs not seen since December 2007. The Nasdaq finished flat.
