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.
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."
Credit Agricole, which has a stronger presence in Greece, was 2.61 percent lower however at 3.55 euros.
Source: AFP Global Edition