European markets set for higher open but France’s political upheaval is in focus

Holly Ellyatt

European markets are expected to open higher Tuesday, with investors keeping an eye on political upheaval in France this week.

The U.K.’s FTSE 100 index is expected to open 18 points higher at 8,322, Germany’s DAX up 15 points at 19,922, France’s CAC up 29 points at 7,245 and Italy’s FTSE MIB up 43 points at 33,601, according to data from IG. Data releases Tuesday include U.K. retail sales and Spanish unemployment figures.

France’s financial markets will be closely watched Tuesday after Prime Minister Michel Barnier turned to special constitutional powers to pass a contested budget bill without a parliamentary vote. Opposition parties on both the left and right say they will back a no-confidence vote to bring Barnier’s minority government down. The vote could take place Wednesday.

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France’s prime minister to push through contested budget despite risk of no-confidence vote

The French CAC 40 index recorded a choppy session on Monday, starting the day lower before turning positive and then tumbling back into negative territory again.

Overnight, Asia-Pacific markets traded higher, tracking gains on Wall Street after the S&P 500 and the Nasdaq Composite rose to new records overnight. U.S. stock futures were near flat Monday night.

Goldman Sachs just refreshed its conviction lists of global stocks, giving 3 over 40% upside

Goldman Sachs has refreshed its lists of top global stock picks for December by adding some and removing others.

The stocks are featured in the investment bank’s “Conviction List – Directors’ Cut,” which boasts a “curated and active” list of buy-rated stocks.

There have also been plenty of additions to the Directors’ Cut, including the following three stocks which Goldman gives more than 40% upside potential over the next 12 months.

— Amala Balakrishner

CNBC Pro: Buy this Canadian dividend growth stock with a 5% yield, Scotiabank says

One of Canada’s large financial holding companies appears to be an attractive dividend investment opportunity, according to Scotiabank analysts.

The investment bank believes the value of the dividend growth is “not reflected” in the stock price and is “underappreciated” by the market.

The stock is currently offering investors 5% dividend yield.

— Ganesh Rao

S&P 500, Nasdaq Composite close at new record highs

The S&P 500 and Nasdaq Composite both closed at new records on Monday.

The broad market benchmark added 0.24% to settle at 6,047.15. The Nasdaq Composite gained 0.97%, finishing at 19,403.95. On the other hand, the blue-chip Dow Jones Industrial Average lost 128.65 points, or 0.29%, to close at 44,782.00.

— Lisa Kailai Han

European markets: Here are the opening calls

European markets are expected to open higher Tuesday.

The U.K.’s FTSE 100 index is expected to open 18 points higher at 8,322, Germany’s DAX up 15 points at 19,922, France’s CAC up 29 points at 7,245 and Italy’s FTSE MIB up 43 points at 33,601, according to data from IG.

Data releases Tuesday include U.K. retail sales and Spanish unemployment figures.

— Holly Ellyatt

Source : cnbc