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Europe stocks close higher ahead of major central bank meetings; UBS shares up nearly 1%

Jenni Reid
Holly Ellyatt

This is CNBC's live blog covering European markets.

European markets closed slightly higher Monday as investors prepared for a week of major central bank meetings in the U.S., Asia and Europe.

The pan-European Stoxx 600 index ended up 0.2%, with most sectors in positive territory. Autos stocks led the gains, roughly 1.4% higher.

Oil and gas stocks, meanwhile, fell 1.3% as crude prices tumbled, with international benchmark Brent crude futures down 2.8% at $72.64 per barrel. Mining stocks were 1.1% lower as the sectors continue to react to recent weak Chinese data and demand concerns.

European markets


Switzerland's UBS moved higher after announcing it had completed the takeover of its embattled former rival Credit Suisse, which will cease trading. Under the terms of the deal, Credit Suisse shareholders receive one UBS share for every 22.48 outstanding shares held.

Shares of the bank closed up nearly 1% after it said it expected that Credit Suisse's operating losses and "significant" restructuring charges would be offset by reductions in risk-weighted assets.

The enlarged UBS Group has a balance sheet of $1.6 trillion and a workforce of 120,000, though CEO Sergio Ermotti has warned "painful" job cuts are likely.

The U.S. Federal Reserve will announce its latest monetary policy move Wednesday, while the European Central Bank will follow with its decision on Thursday. The Bank of Japan's meeting will conclude on Friday.

According to the CME FedWatch Tool, there's a 70% chance that the Fed will pause rate hikes in its June meeting.

Asia-Pacific markets were trading mixed overnight, while S&P 500 futures were higher on Monday.

Oil prices fall more than 3%

Oil prices tumbled during Monday afternoon deals as energy market participants assessed the likelihood of further interest rate hikes from the U.S. Federal Reserve.

International benchmark Brent crude futures were down 3.1% at $72.52 per barrel, while U.S. West Texas Intermediate futures fell 3.7% to $67.59.

The U.S. central bank will announce its latest monetary policy move on Wednesday.

— Sam Meredith

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UBS shares tick higher after completed Credit Suisse takeover

UBS shares rose 1.1% after the Swiss bank said it had completed the takeover of its former domestic rival Credit Suisse.

The deal was hastily arranged in March, facilitated by regulators, amid concerns that severe losses at Credit Suisse would destabilize the banking system.

The Swiss government has agreed to cover losses of up to 9 billion Swiss francs ($10 billion) beyond an initial 5 billion Swiss francs UBS must shoulder as part of the deal, as it absorbs the more risk-heavy business.

UBS said Monday it expected "significant" restructuring charges and Credit Suisse operating losses to be offset by reductions in risk-weighted assets.

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UBS Group share price.

— Jenni Reid

Europe stocks open higher

European stock markets opened higher Monday, with the regional Stoxx 600 index up 0.4% at 8:10 a.m. London time.

Household goods led gains with a 1% uptick, as mining and oil and gas shares both traded around 0.8% lower.

Germany's DAX and France's CAC 40 were both 0.8% higher as investors await the European Central Bank's monetary policy meeting Thursday, while the U.K.'s commodity-heavy FTSE 100 was up 0.15%.

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Stoxx 600 index.

— Jenni Reid

CNBC Pro: Analysts are super bearish on these 13 global stocks and expect them to sink

Several investment banks are urging caution as the stock market continues its rally despite a worsening economic backdrop.

To that end, CNBC Pro screened over 3,330 large and mid-cap global equities that are part of the FTSE All-World ex-U.S. Index and identified the 13 stocks that analysts are most bearish toward.

CNBC Pro subscribers can read more here.

— Ganesh Rao

CNBC Pro: Wells Fargo strategist warns investors not to 'chase this equity rally' as Fed meeting looms

There's a risk that stocks will go downhill from here, says Paul Christopher, head of global market strategy at Wells Fargo Investment Institute.

"There is likely more downside risk in stocks at this point (a.k.a. Don't chase this equity rally)," he told CNBC. "Markets are too complacent in our opinion."

He explains why.

CNBC Pro subscribers can read more here.

— Weizhen Tan

European markets: Here are the opening calls

European markets are heading for a flat open Tuesday.

The U.K.'s FTSE 100 index is expected to open 5 points lower at 7,580, Germany's DAX 3 points lower at 16,190, France's CAC 3 points lower at 7,301 and Italy's FTSE MIB 37 points lower at 27,835 according to data from IG.

Data releases include euro zone current account figures for April.

— Holly Ellyatt