European shares rose at the open on Monday, with investors watching a confidence vote in France over Prime Minister Francois Bayrou's budget plans.

The pan-regional Stoxx 600 was up 0.31 per cent at 550.9 at 0813 BST. France's CAC 40 rose 0.43 per cent ahead of the vote, while Germany's DAX increased 0.7 per cent.

Bayrou expected to lose the vote

Bayrou is expected to lose the vote he called in response to strong opposition to his proposed 44 billion euros of budget cuts, which are aimed at lowering France's deficit. The vote has kept French assets in focus as investors weigh the risk of fresh political uncertainty in the eurozone's second-largest economy.

The gains held into the middle of the day, with the Stoxx 600 up 0.21 per cent at 550.4 at 1139 BST, the CAC 40 up 0.48 per cent and the DAX up 0.73 per cent.

The brighter mood in Europe followed a steadier start for Asian markets and US equity futures, after a volatile week in which doubts about demand for computer chips sent technology shares sharply lower. Investors will also watch eurozone investor confidence data due later on Monday, the first sentiment reading for the region since last week's technology sell-off.