Gains in Europe's main stock markets were expected to be limited, however, as attention switches to Greece where the parliament will vote later on an austerity package that is needed to secure a fresh injection of aid and avert bankruptcy.

"The fact the election is over is obviously positive for the market. Markets don't like uncertainty and there was always the worry that it was going to drag (on)," said Mark Priest, Head of Index & Equity Market Making at ETX Capital.

"A lot depends on this vote today in Greece, so I think it is a little bit of wait-and-see."

The FTSE Eurofirst 300 index of top European shares was up 0.4 percent in early trade at 1,119.65 points, while London's FTSE 100, Frankfurt's DAX and Paris's CAC-40 opened between 0.25 and one percent higher.

The relief that the US election was clear cut had earlier helped lift Asian shares leaving the MSCI world equity index up 0.3 percent to 332.64 points.

US stock index futures indicated Wall Street would see a stronger start as well with the S&P 500 index up 0.25 percent to 1,429.20, and reversing some of its overnight losses.

US Treasury futures were about 15/64 higher at 132-60/64 points, compared to a high of 133-19/64 seen in Asian trading. Thirty-year US bond yields stood at 2.91 percent versus a low of 2.858 percent.

Investors in most major markets were expected to be wary of extending the gains too far due to the approaching US "fiscal cliff", a raft of spending cuts and tax hikes worth around $600 billion due to take effect by year end that could hurt growth.

The dollar slipped 0.25 percent against a basket of major currencies, retreating further from Monday's two-month high. The euro rallied to a session high of $1.2876.

Spot gold rose 0.5 percent to a one-week high of $1,724.21 an ounce, reversing from a 0.6 percent drop earlier.

Brent crude futures gained 0.3 percent to about $111.40 a barrel, bouncing off the day's low of $110.40, while US crude was up 5 cents at $88.76 per barrel.