This is CNBC's live blog covering European markets.

European markets were mixed on Monday with eyes on U.S. debt ceiling negotiations and a higher forecast for EU inflation this year.

The pan-European Stoxx 600 index slipped from modest gains to trade flat in the late afternoon, with U.S. stocks similarly cautious. Mining stocks climbed 1%, while chemicals slipped 0.44%.

President Joe Biden said Sunday he believed an agreement on the U.S. debt ceiling could be reached, after Treasury Secretary Janet Yellen said letting the nation default on its debt should be "unthinkable."

In Europe, the EU's executive arm raised its forecasts for inflation for the euro area to 5.8% this year and 2.8% in 2024, and said it expects the European Central Bank to continue with rate hikes, further weakening lending conditions.

But it also revised its GDP estimates higher, forecasting 1% growth this year from a previous 0.8% estimate.

Meanwhile, Turkey is heading for an unprecedented runoff vote after neither incumbent President Tayyip Erdogan nor his rival Kemal Kilicdaroglu won an outright majority.

With neither candidate clearing the 50% threshold needed to avoid a second round, another vote will be held on May 28.

Shares of Spain's BBVA — the European bank with the highest exposure to Turkey, according to the Wall Street Journal — posted the steepest decline in the Stoxx 600, down 4.5%.

Asia-Pacific markets closed mostly higher, even after two out of three major U.S. indexes recorded a second straight week of losses.

U.S. stocks rise slightly at open

The major averages ticked higher in early trading. The Dow rose about 20 points. The S&P 500 and Nasdaq advanced 0.1% each.

— Fred Imbert

Don’t expect central banks to cut interest rates soon: Deutsche Bank CIO

Christian Nolting, chief investment officer at Deutsche Bank, says the European Central Bank and Bank of England are probably not done hiking interest rates.

Good start, good momentum for the rest of the year for Allianz, CFO says

Giulio Terzariol, chief financial officer of Allianz, discusses the latest company results.

Yellen is 'hopeful' on debt ceiling deal

Treasury Secretary Janet Yellen said over the weekend negotiations were making progress on a debt ceiling deal.

"I'm hopeful. I think the negotiations are very active. I'm told they have found some areas of agreement," said Yellen in an interview with the Wall Street Journal on Saturday from Japan during a meeting of G-7 finance ministers.

President Joe Biden and House Speaker Kevin McCarthy are expected to meet early this week, CNBC has reported. The Treasury Department said the U.S. may not be able to meet its financial obligations as early as June 1.

—John Melloy

Siemens Energy up 4% on record orders and strong sales

Shares of Siemens Energy gained as much as 4% in morning trade after the German company reported record orders and forecast-beating sales in the second quarter.

Siemens Energy also lifted its revenue outlook as its order book surpassed the 100 billion euro ($109 billion) mark.

Sales for the months January to March were up 24% from the precious year at 8 billion euros, and the group now anticipates revenue to grow between 10% and 12%, up from its initial 3-7% forecast.

— Hannah Ward-Glenton

AXA CFO says the insurance firm is seeing price increases across the board

Alban de Mailly Nesle, CFO of AXA, discusses the insurance company's first-quarter earnings and discusses its pricing strategy as it looks to overcome macroeconomic challenges.

European Commission hikes inflation forecasts

The European Commission, the executive arm of the EU, raised its forecasts for inflation in the region and warned of tighter financing conditions.

In its latest economic forecasts, the Brussels institution estimated inflation will reach 5.8% this year and 2.8% in 2024 for the euro area. This is well above the European Central Bank's target of 2%.

As a result, the commission now expects the ECB to continue its rate hiking cycle, which in turn could deteriorate lending conditions across the region.

"As inflation remains high, financing conditions are set to tighten further. Though the ECB and other EU central banks are expected to be nearing the end of the interest rate hiking cycle, the recent turbulence in the financial sector is likely to add pressure to the cost and ease of accessing credit, slowing down investment growth and hitting in particular residential investment," the European Commission said in a statement.

Back in March, several smaller U.S. banks came under pressure off the back of higher interest rates. The cascade of rescues stateside raised questions about the stability of the banking system and whether more lenders will succumb to the pressure of rate increases.

European officials have stressed that European banks are well capitalized and under tighter regulatory controls. Nonetheless, in an environment of higher interest rates, borrowers might struggle to respect credit repayments.

The European Commission also said that there's better growth prospects for the region, revising upward its GDP estimates. It now expects growth in the EU to reach 1% this year versus 0.8% expected about three months ago, and to hit 1.7% in 2024 rather than a previous forecast of 1.6%.

—Silvia Amaro

Turkey's BIST-100 index down as much as 6% on presidential election results

Turkey's BIST-100 index saw a downturn of as much as 6% as markets opened, with investors responding to the uncertainty prompted by the country's inconclusive presidential election results.

Turkey now faces an unprecedented runoff after neither 20-year incumbent Recep Tayyip Erdogan nor his rival, Kemal Kilicdaroglu, secured more than 50% of the vote.

— Hannah Ward-Glenton

Platinum shortage in 2023 will be worse than expected, World Platinum Investment Council says

The world's platinum shortage will be worse than expected in 2023, according to the latest report by the World Platinum Investment Council.

The platinum deficit for 2023 will be around 983,000 ounces (983 koz), the WPIC report said, which is a 77% upward revision from ts last forecast in March.

Global demand for platinum will see a 28% uptick this year from the last, while supply will decrease 1% year on year.

— Hannah Ward-Glenton

CNBC Pro: UBS is betting on European banks over automakers right now. Here's why

European banking stocks are poised to outperform automakers in the foreseeable future, according to UBS.

The investment bank highlighted three structural changes that could drive significant gains for banking stocks over their automotive counterparts, despite similarities in their economic cycles.

CNBC Pro subscribers can read more about those three reasons here.

— Ganesh Rao

CNBC Pro: Bank of America loves these 10 unloved global stocks with major upside

Bank of America strategists have named the ten European stocks that they believe are currently undervalued and could provide significant investment returns.

These picks, which the investment bank refers to as the "Beat Factor Top 10," are primarily made up of industrial and financial companies.

One of the stocks offers more than 60% upside over the next 12 months, according to the investment bank.

CNBC Pro subscribers can read more here.

— Ganesh Rao

European markets: Here are the opening calls

European markets are set to start the new trading week in mixed territory.

The U.K.'s FTSE 100 index is expected to open 1 point higher at 7,751, Germany's DAX 10 points lower at 15,895, France's CAC up 3 points at 7,401 and Italy's FTSE MIB 7 points higher at 27,085, according to data from IG.

Earnings are set to come from Porsche.

— Holly Ellyatt