×

Europe closes lower; G-7 summit in focus

European equities closed lower on Monday as geopolitical tensions continue to rattle sentiment, while shares in Deutsche Bank surged after the co-CEOs of the bank said they intended to resign.

The pan-European FTSEurofirst 300 closed around 0.8 percent lower with most major bourses closing down. London's FTSE 100 fluctuated between gains and losses throughout the session, but closed around 0.2 percent lower. The French CAC closed around 1.3 percent lower, with the German DAX closing 1.2 percent lower.

Shares in Germany's largest lender Deutsche Bank rallied as much as 8 percent, before paring some gains after the bank announced on Sunday it was appointing a new chief executive – John Cryan, former UBS chief financial officer – to replace Anshu Jain and Jürgen Fitschen. At the close, Deutsche Bank settled to around 3.6 percent higher.

Deutsche Bank, Diageo surge

Symbol
Name
Price
 
Change
%Change
Volume
FTSE
---
DAX
---
CAC
---
IBEX 35
---

The bank said it will appoint John Cryan to become co-chief executive effective July 1, 2015 to replace Anshu Jain who steps down on June 30, 2015.

Read MoreDeutsche Bank: Why the dual-CEO system failed

The lender also said co-CEO Juergen Fitschen to remain in his current role until conclusion of annual general meeting on May 19, 2016 and after Fitschen's departure on May 19, 2016, Cryan will become sole CEO.

U.S. stocks were trading mostly lower on Monday as investors eyed a calmer bond market and weighed greater expectations of tightening following Friday's strong jobs report.

In other corporate news, shares in pharmaceutical group Shire closed lower around 2.75 percent after a report from the U.K.'s Sunday Times reported the firm is mulling a £12 billion ($18.32 billion) takeover of Swiss biotech group Actelion. Actelion shares surged near the top of the Stoxx Europe 600, closing around 5.8 percent higher.

Diageo shares were also in focus, closing higher around 6.8 percent, near the top of the FTSE 100 after reports of a possible bid from Brazil's richest man Jorge Paulo Lemann, who founded private equity firm 3G Capital.

Russia, Greece lead G7 meeting

Turkish stocks and currency took a hit during Monday's trade after the ruling Justice and Development Party (AKP) failed to get a majority in parliamentary elections, and analysts warned of a turbulent ride ahead.

The last day of the Group of Seven (G-7) summit in the Bavarian Alps is also in focus for markets on Monday with Russia and protracted negotiations over a Greek reform deal heading the agenda.

On Sunday, leaders from the G-7 decided to keep sanctions against Russia in place until its President Vladimir Putin and Moscow-backed separatists fully implement ed the terms of a peace deal for Ukraine.

Any loosening of European Union sanctions against Russia over Ukraine lies to a large extent in Moscow's hands, German Chancellor Angela Merkel told ZDF television on Sunday.

Elsewhere in Europe, the negotiations between Greece and its international creditors over a reform deal are expected to continue this week.

Read MoreGreece: Leaders lash out as tempers fray

Tensions over the protracted nature of negotiations came to a head Sunday when European Commission President Jean-Claude Juncker accused the Greek Prime Minister Alexis Tsipras of distorting reform proposals by Greece's creditors and of dragging his feet in offering an alternative plan.

Follow us on Twitter: @CNBCWorld