European stocks sharply higher, eyes on E.Z. talks; Dax rallies 1.57%

European stocks were sharply higher on Monday, as last week's comments by European Central Bank President Mario Draghi continued to support, although expectations for a near-term end to the U.S. Federal Reserve's stimulus program persisted. 

During European morning trade, the EURO STOXX 50 surged 1.58%, France’s CAC 40 jumped 1.53%, while Germany’s DAX 30 rallied 1.57%.

Stocks remained supported after ECB President Draghi said last week that the bank expects to maintain interest rates at current or lower levels for an “extended” period of time.

Also in the euro zone, official data on Monday showed that Germany posted a smaller-than-expected trade surplus of EUR14.1 billion in May, as exports decreased by 4.8% on a year-over-year basis and imports fell by 2.6%. Analysts had expected a trade deficit of EUR17.5 billion. 

Financial stocks were broadly higher, as French lenders BNP Paribas and Societe Generale climbed 0.43% and 0.91%, although Germany's Deutsche Bank dipped 0.04%. 

Peripheral lenders added to gains, with Spanish banks BBVA and Banco Santander advancing 0.61% and 0.80% respectively, while Italy's Unicredit and Intesa Sanpaolo rose 0.66% and 0.71%. 

Elsewhere, Novartis jumped 1.26% after saying a psoriasis treatment met all its primary and secondary endpoints in a phase-three study. 

In London, FTSE 100 rallied -%, as U.K. lenders tracked their European counterparts higher. 

Shares in the Royal Bank of Scotland climbed 0.40% and HSBC Holdings advanced 0.60%, while Lloyds Banking and Barclays surged 1.99% and 2.49%. 

Bloomberg reported earlier that former Standard Chartered Chairman Mervyn Davies is working to assemble an investor group to bid for part of the U.K. government’s stake in Lloyds Banking. 

Meanwhile, mining stocks were also broadly higher, as Rio Tinto and BHP Billiton rose 0.08% and 1.53% respectively, while Anglo American jumped 1.19%. 

In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.29% rise, S&P 500 futures signaled a 0.35% gain, while the Nasdaq 100 futures indicated a 0.50% climb. 

Later in the day, Germany was to produce official data on industrial production, while the eurogroup of euro zone finance ministers were to hold talks in Brussels.

In addition, ECB President Mario Draghi was to testify before the committee on Economic and Monetary Affairs in the European Parliament in Brussels.