FRANKFURT (dpa-AFX) - Investors on the German stock market remain cautious. On Monday, the early gains in the DAX evaporated by the close of trading following the failure of the shift to the right in France. On the one hand, the outcome of the parliamentary elections raises fears of a difficult government formation in Paris. On the other hand, there are important dates on the agenda for the rest of the week, such as the US consumer price data on Thursday and the start of the US reporting season with the first major banks on Friday.

The leading German index, which had risen above 18,600 points in the morning, ultimately ended trading down 0.02% at 18,472.05 points. At the same time, the MDax of medium-sized companies fell by 0.71% to 25,545.97 points. It was held back not least by the price losses of Delivery Hero and K+S. The Eurozone's leading index, the EuroStoxx 50, and the French Cac 40 also closed slightly lower. In the USA, the opening gains on Wall Street and the Nasdaq stock market have recently crumbled significantly.

Following the surprising victory of the left in France, there is now uncertainty as to how a government can be formed. The left-wing alliance won the most seats in the parliamentary elections, but is far from an absolute majority. The centrist party alliance came second, while the right-wing nationalist "Rassemblement National" only came third.

"The fact that the run-off election in France did not produce a clear winner is not the worst scenario for the stock market," said market analyst Konstantin Oldenburger from broker CMC Markets, explaining the initially positive market sentiment. "If the left or right with an absolute majority in parliament had only been able to push through some of the radical positions in the future, this would have been the worse option for the financial markets."

Nevertheless, the dried up gains in the Dax are not yet a cause for concern for Borsians, because from a technical perspective, the Borsen traffic light is still green above 18,400 points./ck/he