French stocks rise on government change in Italy

PARIS: French shares showed a gain of 0.77 percent in early trading on Monday after the appointment of Mario Monti as Italian prime minister but were fragile before an Italian bond issue in late morning. The CAC 40 index gained 23.17 points to 3,172.36 points.

At Saxo bank, analysts commented: "A wind of optimism is blowing on the markets after the nomination of Mario Monti.

"Investors' fears regarding contagion of the sovereign debt (crisis) have eased slightly."

On Friday the CAC 40 index had gained 2.76 percent as the departure of Italian Prime Minister Silvio Berlusconi approached and as Greece made progress towards enacting economic reforms under a new government.