European Markets Rise On Greek Election Outcome

European markets rose Monday as investor confidence was rejuvenated following the victory of the pro-austerity parties in Sunday's Greek elections.

The German DAX 30 index rose 0.96 percent or 59.80 points to 6289.21. Shares of BMW AG rose 1.96 percent and shares of Daimler AG climbed 1.83 percent.

The French CAC 40 index climbed 0.88 percent or 27.27 points to 3114.89. Shares of Credit Agricole SA rose 1.86 percent and shares of BNP Paribas SA advanced 1.78 percent.

London's FTSE 100 index rose 0.71 percent or 39.13 points to 5517.94. Shares of Royal Dutch Shell PLC advanced 1.75 percent and shares of BG Group PLC climbed 1.21 percent.

Market sentiments were positive as pro-bailout parties - New Democracy and PASOK - secured the majority in the elections by winning 162 seats together in the 300-seat Greek parliament. However, this buoyancy can be short-lived as uncertainty remains over the composition of any coalition government. Eurogroup has reiterated its conditional commitment while calling for the next government to take ownership of the adjustment program.

With the Greek election result behind us, we expect the relief will be short-lived as although a near term crisis may have been averted, the picture is still very far from rosy, Credit Agricole said in a note.

Meanwhile, the Greek government might run out of money by the end of June, which would increase the urgency in receiving the bailout payments.