European shares hit highest level since May 2022, buoyed by China reopening

The pan-European Stoxx 600 index closed 0.9% higher, taking it to its highest level since early May 2022.

European economies are expected to benefit significantly from China's border re-opening, with travel stocks recording a 2.5% gain.

Germany's DAX index rose 1.25% after industrial production figures rose more than expected in November.

France's CAC 40 was up 0.7% and the U.K.'s FTSE 100 was up 0.3%.

— Jenni Reid

The Swiss National Bank reported a loss of 132 billion Swiss francs ($143 billion) for the 2022 financial year, citing preliminary figures.

As a result it will not make its usual payouts to the Swiss government and member states, it said, with payments to its shareholders also set to be affected.

Of the losses, 131 billion francs came from its foreign currency positions and 1 billion from its Swiss franc positions

Karsten Junius, chief economist at Swiss bank J.Safra Sarasin, told CNBC that the central bank's losses would not alter its monetary policy and he expected another 100 basis points of hikes, to 2%, this year.

Read the full story here.

The three major indexes traded up at market open as investors tried to build on Friday's rally.

The Dow added 0.4% at 9:30 a.m. Meanwhile, the S&P 500 and Nasdaq Composite advanced 0.5% and 0.9%, respectively.

— Alex Harring

Unemployment across the eurozone remained at a record low in November, despite slowing economic growth across the region.

Joblessness stood at 6.5% in November, unchanged from October, according to data from Eurostat, totalling 10.97 million people.

The figure is the lowest is has been since records began in 1998, and is in line with economist forecasts published by The Wall Street Journal.

Unemployment is expected to rise in the first half of 2023 as recessionary pressures increase, and is likely to hit 7% by the middle of the year, according to FactSet, as reported by Reuters.

— Hannah Ward-Glenton

The U.K. arm of German discount supermarket Lidl reported sales were up 24.5% in the four weeks up to Christmas Day compared with 2021.

Over 1.3 million more customers shopped at Lidl in the week leading to Dec. 24 than in the previous year, the discounter said.

The store said it expects more customers to switch from other supermarket groups in 2023 as consumers continue to feel the effects of the cost-of-living crisis.

— Hannah Ward-Glenton

Shares of Alibaba rose as much as 5.8% at the open in Hong Kong, leading gains after Ant Group founder Jack Ma reportedly gave up control of the company. Ant Group is an affiliate of Alibaba, which holds a 33% stake in the fintech company.

Other technology names rose, with NetEase up 1.92% and Tencent gaining 1.49%.

Casino stocks also rose in Hong Kong's first trading session after the city resumed quarantine-free travel with mainland China. MGM China gained 4.52%, Wynn Macau rose 4.25%, Sands China climbed 3.89% and SJM Holdings rose 2.14%.

Consumer names added on to the reopening rally in the region. Anta Sports rose 2.57%, Haidilao rose 2.9%, Xiabuxiabu Catering jumped 6.36% and Budweiser Brewing Company APAC rose 0.37%.

— Jihye Lee

Shares of legacy automakers and parts manufacturers will attract new investors as they transition toward electric vehicles and green technologies, according to Goldman Sachs.

As traditional auto companies grow their share of income from new carbon-neutral technologies, they're likely to be gradually included in ESG funds and benefit from a share price boost, the Wall Street bank said.

The investment bank named 13 stocks that will benefit from the new trend, including one it gives over 100% upside:

CNBC Pro subscribers can read more here.

— Ganesh Rao

Top tech analyst Mark Mahaney has a positive outlook on tech stocks after a brutal year for the sector in 2022.

But investors should remain selective, according to the analyst, who revealed three top picks for 2023.

Pro subscribers can read more here.

— Zavier Ong

BofA has added a number of biotechnology stocks — a sector that is hot on Wall Street right now – to its list of top picks for the first quarter.

The bank identified the biotech stocks, as well as some medical technology companies, as part of its thematic investing picks, on themes it says are related to a "transforming world."

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