French stocks eked out modest gains on Wednesday after French political leaders from the left-wing bloc said they intended to form a government.
However, centrists pointed out that should play a role as the left lacked a majority.
The benchmark CAC 40 was up 25 points, or 0.3 percent, at 7,535 after losing 1.6 percent the previous day.
The dollar held firm following cautious but encouraging remarks on inflation by Federal Reserve Chair Jerome Powell the day before.
In corporate news, Vallourec, a tubular solutions provider, was little changed despite bagging a contract from TotalEnergies.
Banks were mostly higher, with BNP Paribas and Societe Generale posting modest gains.