Europe popped!

European stock markets ended Monday with strong gains, extending Friday's relief rally.

Here's how Europe looks at 4.35 p.m. GMT (11.35 a.m. ET):

• FTSE 100: +2.01%
• DAX: +2.67%
• CAC 40: +3.01%
• IBEX: +3.18%
• Euro Stoxx 50: +2.99%

Here's how the FTSE looks:

The buoyant mood follows big gains in Japan. At the close, the Nikkei 225 was at 16,022.58, up 1069.97 points or 7.16%. The surge made up some of the 13% loss of last week when Japan was caught up in a global rout. (US markets are shut on Monday for Presidents' Day.)

Tony Cross, market analyst at Trustnet Direct, says in an emailed statement:

The jury still appears to be out as to whether we can call this as the bottom of the market, or whether this is more like a degree of selective bargain hunting, but the rally has certainly been protracted and with consumer data suggesting that side of the market is relatively unfazed by the shake out for stocks, a brighter future may now lie ahead.

Stocks also held up after European Central Bank President Mario Draghi told the European Parliament that the ECB is "ready to do its part" to make Europe more resilient. That could mean a further deposit rate cut or a boost to the central bank's bond-buying programme.

Draghi's comments have sent the euro down just over 1% against the dollar on the suggestion that more money could be about to be pumped out.