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* STOXX 600 up 0.4%

* Ocado up on Aeon Partnership to build third robotic warehouse

* Britvic gains on deals with Carlsberg

* Delivery Hero drops after it flags potential antitrust fine

July 8 (Reuters) - European shares gained on Monday after erasing early losses as investors moved past the initial shock from election results in France, which is facing a hung parliament with a leftist alliance unexpectedly taking the top spot.

The pan-European STOXX 600 index edged 0.4% higher, led by gains in construction and materials shares that rose 0.8%. Oil and gas and miners were the only sectors trading in the red with a 0.6% decline for each, tracking lower commodity prices.

"The election of a left-wing alliance would usually not be something for markets to celebrate but given the inherent fears investors had around a right-wing government, this announcement will very likely be a welcome one," said Michael Field, European Market Strategist at Morningstar.

French stocks rose 0.4% even as France faced a hung parliament and the prospect of taxing negotiations starting Monday to form a government, after a surprise left-wing surge blocked Marine Le Pen's quest to bring the far right to power.

Shares of BNP Paribas, France's largest bank, were flat while SocGen rose by 0.7%.

Data from Germany showed exports fell more than expected in May, due to weak demand from China, the U.S and European countries.

The main economic event for the week would be the consumer price index (CPI) data from the U.S. and Germany that will shape the narrative for the future path of interest rate cuts.

Investors cheered Friday's jobs report in the U.S. and added to the case for a September rate cut from the Federal Reserve, with money markets now seeing a 77% chance of a rate cut.

Among individual movers, Ubisoft was the top gainer on the benchmark index with a 6.6% jump after Jefferies raised the rating on the stock to "buy", citing a mix of game pipeline, push for a subscription model, expectation of FCF inflation, and low valuation.

Ocado soared 5.8% after the British online supermarket said it had boosted its partnership with Japan's Aeon with plans to build a third robotic warehouse.

UK's Britvic climbed 4.7% as the soft drinks maker said it has agreed to be taken over by Carlsberg for 3.3 billion pounds ($4.23 billion), after the Danish brewer sweetened its bid.

Shares of Carlsberg also rose 4.0%

Delivery Hero slipped 11.2% to the bottom of STOXX 600 after it said it may face a fine above 400 million euros from Brussels due to antitrust violations.

(Reporting by Shubham Batra in Bengaluru; Editing by Mrigank Dhaniwala and Nivedita Bhattacharjee)