European stocks rose Monday after European Central Bank President Mario Draghi signaled that central bankers are prepared to tweak monetary policy if needed and as German business confidence fell for the fourth straight month. As U.K. markets were closed for a bank holiday there, investors across the continent were mainly in a buying mood after Draghi signaled that policy makers are ready to act – with “unconventional measures” -- if inflation drops further in the euro zone. In Zurich, drug maker Roche Holding AG was up slightly on news of its $8.5 billion purchase of California biotech firm InterMune announced over the weekend. On Monday, Bloomberg News reported that Roche has dropped plans to bid for the 38% of Japanese drug maker Chugai Pharmaceutical Co. it does not already own. Chugai slumped 9.15% in Tokyo to 3,325 yen. In Hong Kong, China Petroleum & Chemical Corp., known as Sinopec, advanced after posting a better than expected 7.5% rise in first-half profit.

More from Video

Veteran Foreign Affairs Expert Ian Bremmer Reveals How to Price Political Risk

Veteran Foreign Affairs Expert Ian Bremmer Reveals How to Price Political Risk

Investors Shouldn't Be Worried About Trump's Trade Tariffs: Ian Bremmer

Investors Shouldn't Be Worried About Trump's Trade Tariffs: Ian Bremmer

Jim Cramer: I've Liked Six Flags Entertainment Stock as an Income Producer

Jim Cramer: I've Liked Six Flags Entertainment Stock as an Income Producer

Video: Jim Cramer Reveals Why He's Cautious on Stocks

Video: Jim Cramer Reveals Why He's Cautious on Stocks

Jim Cramer on Autonomous Driving Prowess of Texas Instruments

Jim Cramer on Autonomous Driving Prowess of Texas Instruments