By Mucahithan Avcioglu
ISTANBUL (AA) - European stocks closed the second trading day of the week mostly with gains.
The pan-European Stoxx 600 index increased 0.06%, or 0.35 points, to close at 552.39.
Britain's FTSE 100 index rose 0.23% to 9,242.53, and the CAC 40 in Paris climbed 0.19% to 7,749.39.
Italy's FTSE MIB index added 0.68% to close at 42,008.22 points and Spain's IBEX 35 index rose 0.14% to close at 15,023.9 points.
On the other hand, Germany's DAX 40 index was down 0.37% to end at 23,718.45.
The French minority government of Prime Minister Francois Bayrou, who has been in office for nearly nine months, became the first government to fall in a vote of confidence since 1958.
President Emmanuel Macron is expected to appoint a new prime minister in the coming days.
Analysts said the fall of the government has largely been priced into the markets, therefore, a stronger downward reaction was not seen in stock and bond markets.
Furthermore, while fears of major turmoil in European financial markets due to uncertainty in France have subsided somewhat, analysts noted that the crisis still poses a burden to the Eurozone, warning that investors should not underestimate the long-term political risks for financial markets.
Meanwhile, investors' focus this week will be on US inflation data and the European Central Bank's (ECB) interest rate decision, which is expected to hold interest rates steady in a decision to be announced Thursday. In response, the US Fed is expected to cut the policy interest rate next week.
The euro/dollar exchange rate fell 0.37% to 1.1719 as of 1700GMT.