European markets close lower as investors look ahead to U.S. inflation data; Sweden's SBB slides

European stock markets closed lower Tuesday, pulled down by lower oil prices, a retreat in luxury stocks following weak Chinese trade data, and steep declines in several property firms — triggered by a sell-off of SBB shares.

France's CAC 40 closed down 0.7%, with the U.K.'s FTSE 100 down 0.3% and Germany's DAX down 0.1%.

— Jenni Reid

Swedish real estate group SBB was 19.3% lower in late afternoon trade after the company said it would suspend dividend payments. 

S&P Global cut its long-term credit rating for the firm, which has struggled with the rise in interest rates and fall in Swedish house prices.

Shares of German health care firm Fresenius were up 8.7% following its first-quarter earnings report, which showed a fall in operating profit but a less severe decline than forecast.

Other top risers included Italy's Banco BPM, which on Monday hiked its annual profit target, and British retailers Marks & Spencer, after the British Retail Consortium said U.K. retail sales increased 5.1% in April.

Sportswear-seller JD Sports rose 1.2% on reports it is in talks over an acquisition of France's Groupe Courir for 520 million euros ($572 million).

— Jenni Reid

The Dow fell about 76 points at the open, while the S&P 500 and Nasdaq dipped around 0.4% each.

— Fred Imbert

Monica Defend, head of Amundi Asset Management, discusses being underweight on equity exposure and why she prefers government bonds.

Shares of Swedish real estate group SBB continued to fall after the company revealed Monday it would halt dividend payments and scrap a planned share issue after S&P Global cut its long-term credit rating for the company.

S&P also warned further downgrades could happen in the next year if SBB is unable to secure sufficient funding.

SBB shares were down 13% around 11 a.m. London time, having already tumbled 20% in the previous session.

The plummet in share price also had a knock-on effect on other Swedish real estate companies.

Fastighets AB Balder dropped 5.5%, Wallenstam fell 5%, Sagax was down 4% and Fabege shed 3.9%.

The Swedish housing market has experienced tumbling house prices in recent months, and they are expected to only be "halfway to the bottom" as the country continues to feel the aftermath of a steadily increasing interest rate by the Riksbank.

— Hannah Ward-Glenton

UBS on Tuesday announced that Credit Suisse CEO Ulrich Koerner will join the executive board of the new joint entity once its emergency purchase of the stricken bank is completed.

The Swiss giant said the legal close of the acquisition is expected within the next few weeks, and the combined entity will operate as a "consolidated banking group."

The Credit Suisse brand will operate independently for the "foreseeable future" as UBS integrates the business in a "phased approach," the bank said in a statement.

Swiss authorities brokered the controversial emergency rescue of Credit Suisse by UBS for 3 billion Swiss francs ($3.37 billion) over the course of a weekend in March, as a crisis of confidence among depositors and shareholders threatened to topple the 167-year-old institution.

Read the full story here.

— Elliot Smith

One corner of the tech industry is set for a boom, according to Morgan Stanley, which predicts that the industry will be worth $5 trillion by 2027.

It named three top stock picks in a corner of tech. CNBC Pro takes a look at what it said about each.

CNBC Pro subscribers can read more here.

— Weizhen Tan

Investing can be tough for those retiring in five years or less.

Markets are volatile, it's uncertain when a recession will happen or how deep it will be, and there's no knowing for sure the direction of the U.S. Federal Reserve's monetary policy.

So how should one invest, bearing in mind a shorter investing horizon for retirees and their need to have some savings?

CNBC Pro subscribers can read more here.

— Weizhen Tan

European markets are expected to open higher Wednesday.

The U.K.'s FTSE 100 index is expected to open 41 points lower at 8,470, Germany's DAX up 60 points at 18,783, France's CAC 22 points higher at 8,249 and Italy's FTSE MIB up 142 points at 34,945, according to data from IG.

Earnings are due from Allianz, EON, RWE, Commerzbank, Thyssenkrupp, TUI, Bilfinger, ABN Amro, Telecom Italia, Burberry and Ubisoft. The latest preliminary gross domestic product reading for the euro zone is also due.

— Holly Ellyatt