Europe's stock markets opened lower on Monday as investors expressed concerns over political uncertainty in France, following snap elections that pointed towards a hung parliament.

In the eurozone, the Paris CAC 40 benchmark index initially fell by 0.4 percent, Frankfurt's DAX dropped by 0.1 percent, and London's FTSE 100 decreased by 0.3 percent. The euro also weakened against both the dollar and the pound.

However, within half an hour of trading, the Paris CAC 40 and Frankfurt's DAX had recovered their losses and moved into positive territory.

The left-wing parties in France were set to become the largest group in the new parliament, surpassing a resurgent far-right faction in an early election called by President Emmanuel Macron. Although Macron's centrist alliance will have fewer members of parliament than before, it performed better than expected and may end up in second place.

Despite this, no party is anticipated to secure an absolute majority in the EU's second-largest economy.

MUFG economist Lee Hardman commented, "Political uncertainty in France is set to remain elevated in the coming weeks until there is greater clarity over what form the next government will take." He added, "With all three major parties falling well short of an absolute majority in parliament, it remains likely that the next government will struggle to implement their policy agenda."

The ongoing political ambiguity in France is expected to continue influencing investor sentiment and market movements until a clearer picture of the government structure emerges.