European markets react to France election, German inflation data [Video]

LONDON — European stocks started the new trading week higher, as regional investors took in the results of the first round of France’s snap parliamentary election.

Europe’s Stoxx 600 index was up 0.34% by 4:00 p.m. London time, rebounding from four straight losses. That was driven by a sharp rise in France’s CAC 40 index, which initially jumped more than 2.5% before cooling to a 1.23% gain.

European markets are reacting to the results of the first round of the snap parliamentary election in France in which there was a sharp upswing in votes for the anti-immigrant National Rally party.

Initial results point to it struggling for an absolute majority in the second round of voting that takes place on July 7, however, which analysts say would be the “least bad” result from a market perspective. French President Emmanuel Macron’s centrist alliance came in third place Sunday.

On the data front, inflation in Germany fell in …