European markets start 2024 on a positive note; oil and gas stocks up 1.3%

European stock markets opened higher Tuesday.

The benchmark Stoxx 600 index was up 0.43% at 8:05 a.m. London time, while most sectors moved higher. Oil and gas led gains, up 1.3%, as technology stocks slipped 0.2%.

Germany’s DAX and France’s CAC 40 both charged around 0.5% higher, while the U.K.’s FTSE 100 was up 0.25%.

A private survey showed manufacturing activity in China expanded in December, at odds with a similar survey conducted by the country’s statistics bureau that reported a contraction.

The Caixin manufacturing purchasing managers’ index came in at 50.8 in December, according to a release Tuesday, following a 50.7 reading for November. China’s official PMI fell to 49.0 in December from 49.4 the previous month, the country’s National Bureau of Statistics said in a Sunday release.

A PMI reading above 50 indicates expansion in activity, while a reading below that level points to a contraction.

— Clement Tan

Energy stocks may have had a tough year, but Goldman Sachs sees promise in European Big Oil – naming integrated oil stocks to play the theme in the new year.

“We are currently at a turning point as EU Big Oils started to outperform U.S. Big Oils, to potentially close their 40% valuation gap against their U.S. peers,” the investment bank’s analysts said.

The investment bank’s positive outlook on Big Oil comes even oil prices were pushed up as major shipping lines and oil transporters suspended travel through the Red Sea. The 2024 outlook for oil has also been underwhelming, with the International Energy Agency expecting the slowdown to continue next year.

Even so, Goldman noted that “EU Big Oils now screen as attractive thanks to enhanced buyback programs, leading to double digit cash returns to shareholders,” naming its top picks to play.

CNBC Pro subscribers can read more here.

— Amala Balakrishner

The Dutch government has partially revoked semiconductor equipment maker ASML’s export license to China for two of its systems used in manufacturing advanced chips.

“A license for the shipment of NXT:2050i and NXT:2100i lithography systems in 2023 has recently been partially revoked by the Dutch government, impacting a small number of customers in China,” said ASML in a statement.

NXT:2050i and NXT:2100i are deep ultraviolet lithography machines used in the volume production of the most advanced logic and memory chips.

The company said it does not expect the move to have a material impact on its financial outlook for 2023.

ASML has been restricted by the Dutch government from exporting its extreme ultraviolet lithography machines to China, in a bid to contain China’s chip making tech. ASML has not shipped the equipment to China so far.

— Sheila Chiang

From family offices to financial advisors and beyond, interest in alternative assets appears to be growing — but the pros appear mixed on whether retail investors should get invested.

For Caesar Sengupta, CEO of financial services firm Arta Finance, there is “incredible value in private markets” and the assets shouldn’t be overlooked.

Elsewhere, Saxo’s chief investment officer Steen Jakobsen argues that retail investors need to err on the side of caution when dabbling in alternatives.

“I think you need to be more than a private retail investor to go into these — my advice is don’t buy it, even if it’s priced to perfection,” he said, adding what asset classes he is bullish on for 2024.

CNBC Pro subscribers can read more here.

— Amala Balakrishner

European markets are set to open higher Tuesday as investors kick off trading in 2024.

The U.K.’s FTSE 100 index is expected to open 20 points higher at 7,742, Germany’s DAX up 48 points at 16,799 and France’s CAC up 27 points at 7,570, according to data from IG. 

There are no major data releases Tuesday.

— Holly Ellyatt