Bank shares steered Europe's STOXX 600 index to a near one-month high on Tuesday, while investors kept a close watch on France's political turmoil as the likelihood of the government's collapse sent shockwaves through its markets.

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

European shares opened higher on Tuesday, led by the tech and basic resources sectors, with investors on tenterhooks ahead of the outcome of France's political instability this week as the likelihood of the government's collapse has rocked the country's markets.