This was CNBC's live blog covering European markets.

European markets closed slightly higher on Monday, after a strong run of gains stumbled at the end of last week.

The Stoxx 600 index closed up 0.2%, with the majority of sectors ending in the green. Industrials stocks were up 0.96% as autos fell 0.77%.

Swiss luxury goods group Richemont rose 5.3% after several analysts raised target prices on the stock. That extended Friday's strong gains on its reporting of record sales and announcement of a new CEO.

Global markets got a boost last week after U.S. inflation data came in softer than expected for April, bolstering hopes that the U.S. Federal Reserve could begin cutting rates later in the year.

U.S. stocks opened mixed Monday after the Dow Jones Industrial Average closed above the key 40,000 level for the first time ever on Friday.

Meanwhile, Asia-Pacific markets mostly rose overnight, tracking Wall Street gains, as investors await economic data from across the region this week, including Japanese inflation and business activity figures.

U.S. markets open mixed

U.S. stocks opened mixed Monday after the Dow Jones Industrial Average closed above the key 40,000 level for the first time last week.

The Dow was down 0.1% in early deals, while the S&P 500 rose 0.1% and the Nasdaq climbed 0.4%.

— Karen Gilchrist

Shein discussing benefits of a London IPO with UK government, minister says

The U.K. government would be "delighted" if Shein listed on the London Stock Exchange and has held several conversations with the company to promote the expertise offered in the market, Lord Dominic Johnson, minister of state in the Department for Business Trade, told CNBC.

"Shein is an amazing company, truly remarkable in many ways, and its scale, the way it's achieved its scale in the last few years is incredible, so having a company like that on the LSE would be enormously valuable," Johnson said.

The Chinese-founded fast-fashion giant is reported to have turned its attention to the LSE after facing regulatory and political challenges over a potential initial public offering in New York. U.S. lawmakers have raised several concerns about Shein, including over the transparency of its supply chain.

The LSE has struggled to court high-growth companies in recent years compared with markets in Asia and the U.S., and has recently lost significant players including travel group TUI and cybersecurity firm Darktrace.

However, British computing startup Raspberry Pi last week said it plans to list in London.

CNBC has contacted Shein for comment.

— Jenni Reid

Richemont shares up 5% following analyst target raises

Shares of Cartier-owner Richemont led European gains through morning trade and were 5.3% higher at midday in London.

Analysts at Jefferies on Monday raised their target price on the stock to 165 Swiss francs ($181.53) from 155 francs, while UBS, Telsey Advisory Group and Bryan, Garnier & Co all raised their own targets on Richemont.

The Swiss luxury retail group on Friday reported record annual sales and named its new CEO as Nicolas Bos, head of French jeweler Van Cleef & Arpels.

— Jenni Reid

Keywords Studios shares leap 63%, hit one-year high on takeover talks

Shares of video game services company Keywords Studios were 63% higher at 11 a.m. in London, reaching their highest level since May 2023, after private equity group EQT confirmed over the weekend that it is in advanced talks to buy the company.

EQT is offering £22.50 ($28.60) per Keywords share — a premium of over 70% from Friday's close of £14.70.

Dan Boardman-Weston, CEO and CIO of BRI Wealth Management, said the offer was an example of investors waking up to opportunities in "cheap" U.K. stocks.

"It just shows how undervalued U.K. equities are, especially at that small and mid-cap end," Boardman-Weston told CNBC's "Squawk Box Europe" on Monday.

"If an end buyer is willing to pay a 70% premium and they still think they can get the numbers to add up at that level, it just shows you how cheap U.K. markets are."

— Katrina Bishop, Jenni Reid

Ryanair shares fall despite profit rise, share buyback

Ryanair shares were 1.1% lower in morning deals, despite the low-cost airline reporting a record annual profit and announcing a 700 million euro ($761 million) share buyback.

Higher passenger numbers and fare hikes helped the company offset a sharp increase in fuel costs and the continued impact of delayed Boeing deliveries.

Ryanair Chief Financial Officer Neil Sorahan told CNBC's "Squawk Box Europe" Monday that its share buyback reflected a "very strong" balance sheet.

"Our priorities have been very much: restore the pay for our people after Covid, bring in pay increases, pay down the debt," he said. "And we've been paying down bonds, we now have 1.4 billion in gross cash at the end of the last year, and that's why the board now have the confidence on top of the ordinary dividend program, to actually return the 700 million to shareholders."

In an analyst presentation, CEO Michael O'Leary said recent fare pricing had been "softer" than expected, Reuters reported.

O'Leary said the airline is willing to cut fares to keep pace with its current 94% load factor — the number of available seats filled — across the April to June quarter, and that weaker pricing may be the result of a "recessionary feel" around Europe.

— Jenni Reid

Europe stocks open mixed

European stocks had a cautious start Monday, with the regional Stoxx 600 index opening near the flatline before climbing 0.07% by 8:40 a.m. in London.

Germany's DAX, the U.K.' s FTSE 100 and France's CAC 40 were all roughly 0.25% higher.

— Jenni Reid

Stocks will experience near-term choppiness followed by a late-year rally, Wells Fargo says

Stocks have rallied to record highs recently, but Wells Fargo is expecting this trend to turn on its head.

Analyst Christopher Harvey pointed out that the "bad news = good news" narrative has pushed the major stock indexes to new records. However, he believes the market is unlikely to continue pushing higher consistently, at least for now.

"Expect near-term choppiness with a late-year rally toward our SPX 5535 target," he wrote.

Harvey's year-end S&P 500 target represents a 4.5% move upward for the benchmark.

— Lisa Kailai Han

The Fed will cut rates this year upon a 'return of disinflation,' UBS says

Softer economic data in recent weeks bolsters the argument that investors may finally receive some much-anticipated rate cuts in 2024, UBS argued in a Friday note.

"We continue to believe recent economic data underpin our view that a return of disinflation should allow the Fed to start easing policy later this year," the bank wrote.

UBS added that price pressures have also been easing in recent months in categories such as shelter, which should help bring down overall inflation.

— Lisa Kailai Han

European markets: Here are the opening calls

European markets are expected to open higher Monday.

The U.K.'s FTSE 100 index is expected to open 16 points higher at 8,433, Germany's DAX up 51 points at 18,759, France's CAC 27 points higher at 8,186 and Italy's FTSE MIB up 130 points at 35,194, according to data from IG.

Earnings come from Ryanair. Data releases include German producer prices for April.

— Holly Ellyatt