European Shares Recover Amid French Election Results

European shares gained on Monday, overcoming early losses due to the French election results. The pan-European STOXX 600 index rose by 0.4%, driven by construction and materials shares. The market reacted positively to the leftist alliance's unexpected victory navigating fears of a right-wing government. Key players included BNP Paribas, SocGen, Ubisoft, Ocado, and Britvic.

European shares clawed back early losses on Monday as investors digested the unexpected results from France's election, which led to a hung parliament and a leftist alliance taking the top spot.

The pan-European STOXX 600 index gained 0.4%, lifted by a 0.8% increase in construction and materials stocks. Conversely, oil, gas, and mining sectors lagged with declines of 0.6%, reflecting lower commodity prices. Michael Field, European Market Strategist at Morningstar, noted that while a left-wing alliance is usually not market-friendly, the avoidance of a right-wing government had a calming effect on investors.

France's stock market rose 0.4% despite the uncertain political landscape. Major banks like BNP Paribas remained steady, while SocGen saw a slight rise of 0.7%. German export data revealed a drop due to weak global demand, highlighting the week's focus on U.S. and German CPI data, which will influence future rate cuts.

In the U.S., Friday's jobs report bolstered hopes for a Federal Reserve rate cut in September, with markets pricing a 77% probability. Ubisoft and Ocado stood out among individual gainers, while Delivery Hero faced significant losses due to looming antitrust fines.

(With inputs from agencies.)