European shares rose on Monday as investors drew comfort from a tentative deal reached by U.S. lawmakers to raise the debt ceiling and avert a default.

The euro zone stocks index climbed 0.4% by 0715 GMT, with the bloc's banks among the top gainers. Trading volumes were light, with markets in the United States, the UK and several European countries closed.

U.S. President Joe Biden on Sunday finalised a budget agreement with House Speaker Kevin McCarthy to suspend the $31.4 trillion debt ceiling until Jan. 1, 2025, and said the deal was ready to move to Congress for a vote.

Shares of SBB jumped 6.2% after the struggling Swedish real estate group said it is broadening an ongoing strategic review, and options could include the sale of the company, business segments or assets. Fitch on Friday cut its credit rating to so-called junk status, citing insufficient deleveraging.

Meanwhile, Turkish President Tayyip Erdogan extended his two decades in power in elections on Sunday, winning a mandate to pursue increasingly authoritarian policies, which have polarised the country and strengthened its position as a regional military power.

(Reporting by Sruthi Shankar in Bengaluru; Editing by Sherry Jacob-Phillips)