This is CNBC's live blog covering European markets.

LONDON — European markets closed higher Tuesday, rebounding slightly from lackluster trade in the previous session.

The pan-European Stoxx 600 closed up 0.43%, with the majority of sectors finishing in positive territory. Travel and leisure stocks added 1.7% to lead gains, while oil and gas was flat after gains seen Monday on the back of Red Sea shipping concerns.

Markets are winding down before the holidays, although international gatherings of senior officials continue, with finance ministers and central bank governors from the Group of Seven industrialized nations meeting Tuesday.

U.S. stocks opened slightly higher. The S&P 500 rose as the recent rally in stocks following a dovish shift from the Federal Reserve helped lift the broader index near its record high.

In the Asia-Pacific region, Japan's Nikkei 225 index jumped 1% Tuesday after the the Bank of Japan left its main policy rate unchanged at its final meeting of the year.

U.S. stocks open higher Tuesday

U.S. stocks opened higher Tuesday.

The Dow Jones Industrial Average rose 43 points, or 0.1%. The S&P 500 gained 0.2%, and the Nasdaq Composite advanced 0.3%.

— Sarah Min

Swiss regulator calls for more powers after Credit Suisse collapse

Switzerland's financial regulator on Tuesday called for greater legal powers and vowed to adapts its approach in the wake of the Credit Suisse collapse.

The 167-year-old bank was rescued by domestic rival UBS in March in a deal brokered by Swiss authorities, after a string of risk management failures and scandals triggered a client and investor exodus that forced it to the brink of insolvency.

The Swiss Financial Market Supervisory Authority (FINMA) said in a Tuesday report that, alongside the government and the Swiss National Bank, it had achieved the aim of safeguarding Credit Suisse's solvency and ensuring financial stability.

— Elliot Smith

Stocks on the move: Oci up 5%, Frontline down 2.5%

Shares of Dutch chemical and fertilizer manufacturer OCI traded at the top of the Stoxx 600 in early deals, rising 5%, after announcing on Monday that it would sell its stake in Iowa Fertilizer Company to Koch AG & Energy Solutions for $3.6 billion.

On the other end, Frontline fell 2.7%, leading losses for shipping companies as investors weighed up the impact of a suspension of Red Sea routes.

— Karen Gilchrist

Europe markets open higher

European markets opened marginally higher Tuesday.

The pan-European Stoxx 600 rose marginally in early deals, with the majority of sectors trading in positive territory. Financial services stocks gained 0.7%, while oil and gas fell 0.7% on the back of Red Sea shipping concerns.

CNBC Pro: Bank of America reveals its 4 biotech top picks for 2024 — and gives one 166% upside

Bank of America has named four small and medium-sized pharmaceutical stocks as its "top picks" for 2024, highlighting their strong potential for regulatory approvals and product launches over the next year. 

The Wall Street bank noted it remains "cautiously selective" in its biotech picks as the sector as a whole has underperformed the broader stock market in 2023.

Meanwhile, the biotech stock with the BofA's biggest upside potential already has approval for a drug that treats a rare kidney disease affecting up to 150,000 people in the U.S.

CNBC Pro subscribers can read more here.

— Ganesh Rao

CNBC Pro: Morgan Stanley prefers 'boring' non-AI tech stocks for 2024. Here are its top global picks

Non-artificial intelligence tech stocks that have struggled in 2023 have significant upside potential in 2024, according to Morgan Stanley.

The investment bank's tech analysts say that while AI and cloud computing stocks will likely continue to grow, their valuations are very high.

The Wall Street bank named its 14 "most preferred" stocks that have "re-rating potential around pricing/growth, early cycle and idiosyncratic earnings upside."

CNBC Pro subscribers can read more here.

— Ganesh Rao

European markets: Here are the opening calls

European markets are set to open higher Wednesday.

The U.K.'s FTSE 100 index is expected to open 20 points higher at 7,661, Germany's DAX up 23 points at 16,671, France's CAC up 22 points at 7,599 and Italy's FTSE MIB up 63 points at 30,605, according to data from IG. 

U.K. inflation data for November is due.

— Holly Ellyatt