European shares extended their gains to more than 2 percent in late trading on Monday, led by strength in financial stocks such as Barclays "It's volatile, one day down, another day up. People are cautious and many are taking a very short-term view," said Giuseppe-Guido Amato, equity market strategist at German brokerage Lang & Schwarz in Duesseldorf.

With U.S. markets were closed for the Presidents Day holiday, trading volumes in Europe were relatively low. Full Update