European stocks leapt on Monday as a bigger-than-expected bailout deal for Spain's ailing banks prompted investors to scoop up financial shares, but the rally could be short lived as questions emerged on the structure of the package.

At 1021 GMT, the FTSEurofirst 300 index of top European shares was up 1.4 per cent at 995.59 points, while the
eurozone's blue-chip Euro STOXX 50 index surged 1.9 per cent to 2,185.27 points, with both indexes hitting four-week
highs earlier in the session.

Spain's banking shares led the rally, with Banco Santander rising 3.9 per cent and Bankia jumping eight per cent, while other eurozone banks also gained ground, with UniCredit up 1.5 per cent and Credit Agricole up 3.7 per cent.