Europe's stock markets rose to two-month highs to kick-off trading for the second half of the year after better-than-expected economic data from Asia and at home helped build on gains from the conclusion of last week's Leaders' Summit in Brussels.

The FTSE Eurofirst 300, the broadest measure of blue-chip share price performance, gained more than 1 percent to trade at 1,033.83 – the highest level since May 3.

Manufacturing data from China, Japan, Europe and the United Kingdom today all managed to modestly top expectations, although the weakness of the figures also demonstrate the impact the European debt crisis has had on global economic confidence.

Investors are now looking to interest rate decisions from the Bank of England and the European Central Bank Thursday to add support in the form of lower benchmark interest rates to help spur sagging economies in Europe and Britain.

Share gains were tempered, however, by rising bond prices and a decline in the Euro as investors continue to question the ability of European Leaders to maintain control of the region's spiralling debt crisis.