Manufacturing activity in the U.S. unexpectedly expanded for the first time in 12 months in January, according to a report released by the Institute for Supply Management on Monday. The ISM said its manufacturing PMI jumped to 52.6 in January from 47.9 in December, with a reading above 50 indicating growth. Economists had expected the index to inch up to 48.5.

The U.S. Dollar declined during the week ended January 30 despite the boost provided by the appointment of Kevin Warsh as the next Fed Chairman.

The euro area manufacturing activity shrank at a slower pace in January as production returned to growth, final survey results from S&P Global showed on Monday. The final HCOB manufacturing Purchasing Managers' Index rose to 49.5 in January from a nine-month low of 48.8 in December. The flash reading was 49.4. The score has remained below 50.0 for the third successive month in January.

UK house price growth accelerated in January as uncertainty around the budget faded, monthly data from the Nationwide Building Society showed Monday. House prices rose at a pace of 1.0 percent on a yearly basis in January after climbing 0.6 percent in December. This was faster than economists' forecast of 0.7 percent.

Factory Purchasing Managers' survey results from the euro area and the UK are the top economic news due on Monday. At 2.00 am ET, Germany's statistical office Destatis publishes December's retail sales data. Sales are forecast to fall 0.1 percent on a monthly basis, following a 0.6 percent drop in November.

China's manufacturing activity logged a slightly faster growth in January on higher production and new orders, survey data published by S&P Global showed on Monday. The RatingDog factory Purchasing Managers' Index rose to 50.3 in January from 50.1 in December. A score above 50.0 indicates expansion.