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Europe markets rise as French stocks shrug off surprise election result

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European stocks ticked higher in morning trade as markets reacted to a surprise win for a left-wing coalition of parties in French elections.

French stocks erased earlier losses to rise 0.2% by 8:35 a.m. London time . The euro, meanwhile, was flat against the dollar.

LONDON — European stocks ticked higher in morning trade on Monday, as markets reacted to an expected hung parliament in France after a surprise win for a left-wing coalition of parties.the largest number of seats in this weekend's parliamentary elections, scuppering an expected surge for the far-right. However, the coalition failed to secure an absolute majority, early data showed, leaving markets digesting the possibility of a hung parliament.

"You have a hung parliament as expected so last week, the market has played this out ... It was just expected to be more right-wing and at the end it is left-wing," he told CNBC on Monday.Deutsche Bank strategists added that markets will be suspicious of the New Popular Front's "fiscally aggressive" spending and taxation plans.

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