France's CAC 40 rose 1.3%, the Swiss SMI rose 1.8% and the German DAX index rose 1.5% on Monday afternoon. The UK FTSE 100 index has been closed for the Christmas holidays.
Trump prevented the government from closing late Sunday and extended unemployment benefits to millions of Americans. The signing came days after Trump proposed vetoing the legislation and calling for $ 2,000 in direct payments to Americans instead of $ 600. Wall Street stocks rose on the news.
In Asia, Alibaba's shares in Hong Kong fell more than 8% for the second straight year after Chinese regulators ordered Alibaba's subsidiary Ant Group to revise its business.
Back in Europe, traders reacted to the announcement of a Brexit trade agreement between the UK and the EU. The deal, which was sealed after the market closed on December 24th, has to be approved by UK lawmakers this week before December 31st. The 27 ambassadors from the EU member states officially approved the deal on Monday.
In the news on individual stocks, Italian company Saipem saw its shares rise 4% after signing a deal with the Italian Navy. Deutsche Post closed 2.7% after its CEO announced that the company would expect record earnings in 2020.
– CNBC's Eustance Huang and Yun Li contributed to this article.