European markets head for mixed open with all eyes on French confidence vote

Holly Ellyatt

European stocks are heading for a mixed open Wednesday with regional market attention focused on an upcoming no-confidence vote in France’s parliament, the National Assembly.

The vote is expected to take place this evening after lawmakers have debated two motions of no-confidence, tabled by the leftwing New Popular Front alliance and rightwing National Rally party, against Prime Minister Michel Barnier’s minority government.

The motions come after Barnier used special constitutional powers on Monday to pass a contested budget bill without a parliamentary vote.

National Rally has already said it will support the motion brought by its left-wing rivals, but will also support its own motion of no-confidence. It’s highly likely that Barnier’s government will collapse after the vote.

On Wednesday, European services activity data is due and the OECD releases its latest economic outlook.

In other news, political upheaval in South Korea is being closely-watched by investors in the Asia-Pacific region. Overnight, South Korean markets opened lower after President Yoon Suk Yeol’s surprise decision to impose and then lift a martial law decree within hours.

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South Korea stocks down around 2% as opposition prepares Yoon impeachment bill

A coalition of lawmakers from opposition parties are planning to propose a bill to impeach Yoon on Wednesday, which should be voted within 72 hours if introduced, according to Reuters. Yoon’s chief of staff and senior secretaries have reportedly offered to resign en masse.

— CNBC’s Dylan Butts contributed to this market summary.

South Korean stocks nosedive

South Korea’s financial markets took a downward turn on Wednesday, as an outbreak of political turmoil left investors uncertain about the country’s prospects.

A coalition of South Korean lawmakers plans to begin impeachment proceedings against President Yoon Suk Yeoul, after he unexpectedly imposed martial law — a decision that triggered protests in Seoul, before being reversed in the country’s parliament within a matter of hours.  

The South Korean Kospi index shed 1.4% by 6:42 a.m. London time, while the Kosdaq was trading around 2% lower. The Korean won erased some of its losses from Tuesday, with the U.S. dollar standing at around 1,410.31 won during early trades.  

— Chloe Taylor

CNBC Pro: ‘We really like the U.S.’ Julius Baer portfolio manager says. Here’s where she sees opportunity

At a time when investors are mixed on the U.S. market, one portfolio manager remains optimistic and sees reason to stay invested over the longer-term.

“We really like the U.S. Now that the election result is clear and behind us, we can reasonably assume a higher growth rate in the U.S., and that’s probably going to lead to an end of year rally,” Aneka Beneby, portfolio manager at Julius Baer International said, revealing segments she sees opportunities in.

— Amala Balakrishner

CNBC Pro: How are investors trading France’s political chaos?

The French government is on the brink of collapse this week and investors are gearing up for a volatile week of trading, with some eyeing opportunities amid the chaos.

Investors have shared how they’re trading French bonds and laid out what could happen if the government falls, and other scenarios.

— Ganesh Rao

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