European stock markets opened on a hesitant note on Monday, with political uncertainty in France adding to investor caution ahead of a salvo of US indicators this week.

In Paris, the CAC 40 was up 0.22% at 7,692.09 points at around 07:35 GMT, after opening in the red. It is still down 4% since the announcement, on June 9, of the surprise dissolution of the French National Assembly.

In Frankfurt, the Dax gained 0.13%, while the FTSE

in London lost 0.15%.

The pan-European FTSEurofirst 300 index gained 0.02%, the EuroStoxx 50 0.4% and the Stoxx 600

advanced by 0.24%.

The left-wing New Popular Front (NFP) alliance came out on top in the second round of parliamentary elections, but no party won an absolute majority, creating considerable uncertainty about the country's political future and the state of its public finances.

Investors will be on the lookout for the next political developments, and volatility in French assets could persist.

Within the CAC 40, French banks, hard hit since the announcement of early parliamentary elections, remain under pressure.

BNP Paribas is down 0.4%, while Société Générale

was stable and Crédit Agricole gained 0.6%.

This week will also see a busy agenda on the other side of the Atlantic.

On Tuesday and Wednesday, Federal Reserve Chairman Jerome Powell will comment on the central bank's monetary policy before the US Congress and Senate.

Thursday sees the release of CPI inflation figures for June, while the second-quarter earnings season kicks off on the same day.

The major US banks are due to publish their figures on Friday. (Written by Corentin Chappron, edited by Blandine Hénault)