German shares hit ten-day highs on Monday after the federal election outcome reduced the chances of a left-wing coalition gaining power, while broader European markets cheered a surge in crude prices that powered oil stocks.

Germany’s blue-chip DAX  jumped 1%, leading gains among regional indexes, while the pan-European STOXX 600  index added 0.6% in early deals.

Germany’s centre-left Social Democrats were set to start trying to form a government after they narrowly won their first national election since 2005, saying they would seek to form a coalition with the Greens and the liberal Free Democrats in what is dubbed as the “traffic light” coalition.

While it might take a while before the new government is formed, investors were relieved that hard-left Linke party fell below the 5% threshold needed to enter parliament.

Oil & gas stocks jumped 1.2% as Brent futures headed for $80 per barrel amid supply concerns as parts of the world saw demand pick up with the easing of pandemic conditions.

The FTSE MIB climbed up by  0.64% to 26,135.20. In the cash markets, the DAX  Germany was trading up 0.55%  to 15,684.65. CAC 40  in France  rose by 0.63% to 6,680.37 while the FTSE 100  in the U.K. were up  by 0.53% to 7,089.35. ,at the time of writing.