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European Markets Close Lower; Oil and Gas Stocks Trim Gains Following Output Cut

Luke MacGregor | Bloomberg | Getty Images

This is CNBC's live blog covering European markets.

European markets closed lower on Monday as traders digested the U.S. debt ceiling agreement and euro zone inflation data.

The pan-European Stoxx 600 index closed 0.5% lower after muted trading through most of the session.

Oil and gas stocks ended the session 0.27% lower, slipping from gains of 1.1% earlier in the session despite oil prices remaining in positive territory. Saudi Arabia announced voluntary cuts to its output Sunday, starting in July. OPEC+ on Sunday announced it would make no changes to its planned oil production cuts for the rest of the year.

Travel and leisure stocks led sector losses, down by 1.3%, as airline group Air France KLM fell 3.3%.

The Stoxx 600 closed 1.5% higher last week, pulling back from a two-month low Wednesday after U.S. lawmakers passed a bill to raise the debt ceiling and cap government spending.

In Europe, traders are still analyzing the impact of Thursday's inflation data, which showed euro zone inflation falling to its lowest level since February 2022. European Central Bank President Christine Lagarde said the 6.1% figure was still "too high" and suggested, along with other ECB officials, that the central bank's hiking cycle would have to continue.

Asia-Pacific markets were largely higher on the U.S. debt ceiling news, while U.S. equity futures were little changed.

Europe stocks close lower

European stocks had a downbeat start to the week, ending the session 0.5% lower with most sectors in the red.

France's CAC 40 fell 0.96%, Germany's DAX was down 0.54% and the U.K.'s FTSE 100 dipped 0.1%.

— Jenni Reid

U.S. stocks open little changed

The Dow opened about 13 points lower, while the S&P 500 and Nasdaq rose slightly.

— Fred Imbert

China’s reopening has been a ‘damp squib,’ says investment management firm

Catherine Doyle, investment specialist at Newton Investment Management, says "we do actually quite like China in the near term, and [are] a bit more cautious ... on the longer term."

Euro zone business growth slowed in May; PMI at three-month low

Euro zone business growth slowed in May, according to monthly purchasing managers' index figures. The index number, which is viewed as a good indicator of general economic health, fell from 54.1 in April to 52.8 in May.

Any figure above 50 is considered a sign of growth, rather than contraction, but May's figure fell short of the preliminary estimate of 53.3.

— Hannah Ward-Glenton

Disinflationary process is underway in Europe, says ECB’s Vujčić

Boris Vujčić, member of the Governing Council of the European Central Bank and governor of the Croatia National Bank, says, however, that more data is needed to determine "how quick this process is."

UBS expects to seal Credit Suisse takeover as early as June 12

The Credit Suisse logo seen displayed on a smartphone and UBS logo on the background.
Sopa Images | Lightrocket | Getty Images
The Credit Suisse logo seen displayed on a smartphone and UBS logo on the background.

UBS expects to complete its takeover of Credit Suisse "as early as June 12", which will create a giant Swiss bank with a balance sheet of $1.6 trillion following a government-backed rescue earlier this year.

The deal's completion is subject to the registration statement, which covers shares to be delivered, being declared effective by the U.S. Securities and Exchange Commission, and other remaining closing conditions, UBS said in a statement on Monday.

Read more here.

— Reuters

Indivior shares up 10% after settling opioid treatment monopoly claims

Indivior topped the Stoxx 600 index in early trading as shares jumped 10%.

The U.S. addiction treatment company, which has shares listed in London, said Friday it agreed to pay $102.5 million to settle a lawsuit by 41 U.S. states over claims it monopolized its opioid addiction treatment Suboxone.

— Hannah Ward-Glenton

European equity markets open higher

European markets opened muted after ending on a high on Friday, as traders digest the U.S. debt ceiling agreement and euro zone inflation data.

The pan-European Stoxx 600 index was up 0.1% as markets opened, with sectors and major bourses a mixture of marginal gains and losses.

Oil and gas stocks led gains with a 1.1% uptick after Saudi Arabia announced voluntary cuts to its output Sunday, starting in July. OPEC+ on Sunday announced it would make no changes to its planned oil production cuts for the rest of the year.

Travel and leisure stocks dipped into negative territory, with a 0.5% downturn, followed by retail, which was down 0.4%.

— Hannah Ward-Glenton

CNBC Pro: Ark Invest: These 2 A.I. stocks are being overlooked by the market

Two companies specializing in artificial intelligence are being underappreciated by the stock market, according to Frank Downing of Ark Investments.

Downing, director of research for ARK Next Generation Internet ETF, believes that as the cost of AI falls, investors should look for companies with niche use cases that can offer higher returns.

Downing suggests the stocks he's picked could be significantly boosted by leveraging large language models like those made by OpenAI, the firm behind ChatGPT.

CNBC Pro subscribers can read more here.

— Ganesh Rao

CNBC Pro: Goldman and others say copper prices are set to soar. Here are some stocks analysts love

Wall Street analysts have recently been bullish on the metal, with Citi and Goldman predicting that prices are set to soar.

For those looking to buy into the sector, CNBC Pro screened for stocks in the Global X Copper Miners ETF, and the resulting stocks include one with nearly 100% upside.

CNBC Pro subscribers can read more here.

— Weizhen Tan

European markets: Here are the opening calls

The U.K.'s FTSE index will open 11 points higher to 7,622, according to IG data, while Italy's MIB will be up 61 points to 27,109. Both France and Germany's major indexes look set to open lower, with the DAX dropping 15 points to 16,048 and the CAC shedding 4 points.

— Hannah Ward-Glenton

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