US president-elect Joe Biden outlined a $1.9 trillion stimulus package proposal on Thursday, but failed to excite markets that had rallied in anticipation of the announcement.
The regional STOXX 600 index closed up 0.05pc after a mixed session, while Germany's DAX rose 0.1pc, France's CAC inched 0.2pc lower and Britain's FTSE 100 fell 0.7pc.
The pan-European STOXX 600 index advanced 0.5pc to near February 2020 highs, while London's blue-chip FTSE 100 gained 0.2pc and Germany's DAX index was up 0.6pc.
Most markets in the region were subdued due to thin volumes in a holiday-shortened week. The German DAX was flat, while French and Spanish stocks slipped 0.1% each.
As daily cases in Italy hit a new record over the weekend, Prime Minister Giuseppe Conte gave mayors the power to shut public squares from 9 p.m. to halt gatherings.
The pan-European STOXX 600 index rose 0.8pc, recovering from its worst fall in three months, with technology stocks that have outperformed this year, rising 1.6pc.