Europe stocks high amid central bank meetings

European markets closed with slight gains on Monday, as investors prepared for a series of crucial central bank meetings scheduled in the U.S., Asia, and Europe throughout the week.

The pan-European Stoxx 600 index ended the day up 0.2%, with most sectors experiencing positive movements. Automotive stocks led the gains, rising approximately 1.4%.

However, oil and gas stocks faced a decline of 1.3% as crude oil prices experienced a slump, with international benchmark Brent crude futures dropping by 2.8% to $72.64 per barrel. Mining stocks also saw a 1.1% decrease as the sector continued to react to recent disappointing Chinese data and concerns surrounding demand.

UBS, the Swiss banking giant, witnessed an increase in its share price after announcing the completion of its acquisition of its struggling former rival, Credit Suisse. Under the terms of the deal, Credit Suisse shareholders will receive one UBS share for every 22.48 outstanding shares held. UBS shares closed the day up nearly 1%, and the bank expressed its expectation that Credit Suisse’s operating losses and significant restructuring charges would be balanced by reductions in risk-weighted assets. However, UBS CEO Sergio Ermotti cautioned that job cuts would be inevitable.

This week, the focus will be on major central bank meetings. The U.S. Federal Reserve is set to announce its latest monetary policy decision on Wednesday, followed by the European Central Bank on Thursday. The Bank of Japan’s meeting will conclude on Friday. Market expectations, as reflected in the CME FedWatch Tool, indicate a 70% probability that the Fed will pause rate hikes in its June meeting. Overnight, Asia-Pacific markets showed mixed trading, while S&P 500 futures were higher on Monday.