French stocks rallied to show gains in afternoon Paris trading on Monday, suggesting that investors had quickly integrated the prospects of a Socialist leader in Paris and turmoil in Greece.
At 1:40 pm (1140 GMT), the CAC index of leading shares showed a gain of 0.21 percent to 3,168.50 points in relatively thin trading owing to the closure of London markets.
The Paris market had opened lower following a poor showing in Greek elections of the two coalition parties that backed austerity measures, raising the question of how a second EU/IMF bailout for Greece would move forward.
That in turn could lead to a new round of uncertainty in the eurozone debt crisis.
The victory of French president-elect Francois Hollande did not come as a surprise for investors meanwhile, and was said by observers to weigh less on equity trading.
German Chancellor Angela Merkel, who had supported outgoing president Nicolas Sarkozy, said Monday that Hollande would be welcomed "with open arms" when he visits Berlin after taking office.
Cooperation between Germany and France, the two biggest eurozone economies, is crucial for the 17-nation bloc as it tries to resolve its dogged debt crisis.
Merkel said she and Hollande had agreed during a phone call on Sunday to work "well and intensively" together, adding: "Franco-German cooperation is essential for Europe and we all want Europe to succeed."
Among French banking stocks, BNP Paribas had gained 1.95 percent to 29.56 euros and Societe Generale was 2.37 percent higher at 17.71 percent.
Credit Agricole, which has a stronger presence in Greece, was 2.61 percent lower however at 3.55 euros.
Source: AFP Global Edition
