This is CNBC's live blog covering European markets.

European markets closed higher Monday, remaining upbeat after the announcement that Rishi Sunak would replace Liz Truss as U.K. prime minister.

The Stoxx 600 provisionally closed up 1.4%, with all sectors and major bourses in positive territory. Utilities, construction, retail and media stocks all added more than 2%.

The Dow Jones Industrial Average was 0.8% higher in early trade, ahead of a flurry of third-quarter earnings.

Shares in the Asia-Pacific were mixed Monday, but Hong Kong's Hang Seng index plunged about 6%, with the Hang Seng Tech index down more than 8%.

Shares of Chinese tech giants plunged on fears for what Xi Jinping's ever-intensifying grip on power means for its companies, following the annual Party Congress.

Incoming UK PM Rishi Sunak makes first speech

Rishi Sunak said he was "honored" and would serve with "integrity and humility" in his first speech since it was announced he would be the next U.K. prime minister.

Sunak was elected leader of the Conservative Party by fellow Conservative members of parliament at 2 p.m. London time. As the party with the most MPs following the 2019 general election, he will now be sworn in as the nation's leader.

"The United Kingdom is a great country but there is no doubt we face a profound economic challenge. We now need stability and unity and I will make it my utmost priority to bring our country together," he said.

"Because that is the only way we will overcome the challenges we face and build a better, more prosperous future for our children and our grandchildren."

Sterling was flat against the dollar following the remarks, and the FTSE 100 remained up 0.4%.

— Jenni Reid

Pound choppy, gilt yields lower as Sunak announced as new UK PM

The British pound was 0.1% higher than the dollar at 3 p.m. London time, one hour after it was announced that Rishi Sunak would be the new U.K. prime minister.

It was 0.2% down against the dollar earlier in the afternoon.

Gilt yields fell sharply, with the benchmark 10-year yield down 25 basis points and the 2-year yield down 26 basis points. Yields move inversely to prices.

Volatility in the U.K. sovereign bond market, sparked by outgoing PM Liz Truss' budget announcement one month ago, was a key reason she was pushed into resigning by her party late last week.

Sunak was finance minister under Truss' predecessor Boris Johnson and was widely considered a market-friendly candidate — though analysts say he will face a tough job with the U.K. facing a recession and energy crisis and with many viewing the country's economic credibility as damaged.

"The fall in gilt yields on the news today that Rishi Sunak will become the U.K.'s next prime minister has reduced the chances of a significant fiscal consolidation," said Ruth Gregory, senior U.K. economist at Capital Economics. "Even so, the new PM will still have to work hard to restore stability in the eyes of the financial markets."

— Jenni Reid

Prosus sinks 14% on China growth concerns

Shares of Dutch technology investor Prosus sunk 14% Monday, tracking Hong Kong and China-based tech giants grappling with economic slowdown fears in China.

The tumble comes after Chinese President Xi Jinping laid out plans for a third term as leader.

— Hannah Ward-Glenton

Education group Pearson up 8% after 'outstanding' English language learning growth

Shares of Pearson were up 8% Monday after the company reported 7% growth in underlying sales in the last nine months, beating market expectations.

The education company said an "outstanding" performance in English language learning helped deliver the results, with English courses reporting 28% growth.

Higher education was down 4%, which was in line with company expectations.

— Hannah Ward-Glenton

UK 10-year gilt yield drops as UK set to get new PM

U.K. 10-year gilt yields are trading at their lowest level since the mini-budget, which threw the markets into turmoil on Sept. 23.

The move comes as former Finance Minister Rishi Sunak looks set to become the new prime minister.

10-year yields traded almost 21 basis points lower at 3.846% around 9 a.m. London time.

— Hannah Ward-Glenton

European markets: Here are the opening calls

European indexes are expected to open higher this morning, with the U.K.'s FTSE up 23 points to 6,992, Germany's DAX up 130 points to 12,846, France's CAC up 50 points to 6,079 and Italy's MIB up 221 points to 21,647.

— Hannah Ward-Glenton

CNBC Pro: Oil could rise or fall — and these energy stocks are winners either way, portfolio manager says

Whether oil prices rise or fall, energy stocks are still worth investing in, according to Foord Asset Management's Brian Arcese.

He names a couple of his favorite energy stocks, including one that he says will generate a "significant amount of cash" if oil prices stay high.

CNBC Pro subscribers can read more here.

— Weizhen Tan

Hong Kong stock movers: Tech drags down the broader index

Chinese tech companies dragged down the broader Hang Seng index in morning trade, with heavyweights such as Tencent and Alibaba dropping around 6% each.

Meituan shed 4.87%, while JD.com declined around 6% as well.

The Hang Seng Tech index was 3.49% lower, and the Hang Seng last lost 2.73%.

— Abigail Ng

Big tech earnings reports coming up this week

A slew of big tech names report third quarter earnings this week. Because of the size of many of these companies' market capitalizations, any moves after earnings will likely impact the entire market.

Alphabet and Microsoft report earnings on Tuesday, followed by Meta Platforms on Wednesday. Apple and Amazon will report Friday.

—Carmen Reinicke

Stock futures rise Sunday evening

Stock futures rose Sunday evening as Wall Street looks to continue its best week since June amid third quarter earnings season.

Futures tied to the Dow Jones Industrial Average gained 289 points, or 0.93%, just a few minutes after the start of futures trading Sunday. S&P 500 futures rose 1.18% while Nasdaq 100 futures climbed 1.37%.

—Carmen Reinicke