European markets start the week higher, shrugging off credit concerns.

European stocks rose on Monday after days of sharp volatility as investors weighed concerns about bad loans on Wall Street.

The pan-European STOXX 600 index rose 0.7% to 570.71 points, after closing last Friday down 0.95% due to pressure on investor sentiment in Europe due to concerns about the US banking sector.

The British FTSE 100 index rose 0.5% to 9,402.80 points, the German DAX index rose 1.1% to 24,103.99 points, and the French CAC 40 index rose 0.7% to 8,236.58 points.

European markets closed last Friday with losses, with the pan-European STOXX 600 index falling 0.95%, impacted by concerns about the US banking sector, which weighed on investor sentiment in Europe.

Last week, US banks Zainz and Western Alliance revealed problems related to bad loans, leading to a decline in shares of several major and regional banks before they rebounded on Friday.

European bank stocks have risen 40% this year, so there is a high level of expectation in the market, Christian Edelman, managing partner for Europe at Oliver Wyman, told CNBC.

He added, Credit turmoil is actually concentrated in the United States, as a result of the defaults we've seen in two banks so far. As for Europe, results so far have been strong, and we haven't seen any negative surprises.

But the week will see a heavier announcement period, with L'Oréal set to announce its results on Tuesday, followed by SAP, Barclays, Heineken, and Svenska Handelsbanken on Wednesday, and Kering, Roche, Unilever, and Lloyds Bank on Thursday.

Kering announced on Sunday that it had agreed to sell its perfume and cosmetics division to L'Oréal for €4 billion ($4.66 billion).

Globally, US stock futures rose in overnight trading as investors awaited a series of major corporate earnings reports and inflation data expected in the coming days.

Netflix, Coca-Cola, Tesla, and Intel are scheduled to announce their earnings this week, while the US Consumer Price Index for September is expected to be released on Friday and is expected to show continued inflationary pressures.

Traders will pay special attention to this report as some government data remains suspended due to the partial US government shutdown.

In Asia, markets rose during overnight trading after growth data from China showed that GDP rose 4.8% during the July-September quarter compared to the same period last year, in line with analysts' expectations polled by Reuters.