* Italy's FTSE MIB outperforms as Renzi wins EU vote
* Pro-EU forces keep majority after European election
* French CAC lags after National Front win
* Germany's DAX briefly hits new record high
* London, New York closed for public holiday
By Sudip Kar-Gupta
LONDON, May 26 European equities rose on Monday,
with Italy's FTSE MIB outperforming after Prime
Minister Matteo Renzi's centre-left Democratic Party's reforms
were endorsed by a strong showing in European elections.
The FTSE MIB rose 2.9 percent, outpacing other
major European indexes, as domestically focused banks including
as UBI Banca and BP Milano rallied.
Germany's DAX - where the establishment also
performed well - hit a record high of 9,876.10 points, before
settling back to 9,867.92 points, a rise of 1 percent.
Initial election results from around the 28-nation bloc
showed the pro-European centre-left and centre-right parties
will keep control of around 70 percent of the 751-seat EU
The number of Eurosceptic European Parliament members will,
however, more than double after stunning victories for
nationalists in France and Britain in what was seen as a protest
vote against austerity and unemployment.
France's CAC-40 lagged the overall market, edging up
"The results are more important on the national and local
level than on the broader EU front," said Michel Juvet, chief
investment officer at Swiss bank Bordier.
The London and New York markets were closed for a public
In France, the anti-immigrant and anti-euro National Front
party topped the vote, in what French Prime Minister Manuel
Valls described as a political "earthquake."
Bordier's Juvet said that while the rise of Eurosceptic
parties could be unsettling for some, it could also put even
more pressure on the European Central Bank to unveil measures
next month to support the region's economic recovery.
Expectations of new ECB action in June, including interest
rate cuts, have helped prop up European stock markets.
Francois Savary, chief investment officer at Swiss bank
Reyl, said that while the French EU vote result showed the
country's political difficulties, it should not impact the stock
market too much since many CAC companies make much of their
money outside France.
"The EU vote says a lot about the difficulties that France
is in. But we still have some great stocks and great export
companies on the CAC-40," said Savary.
Europe bourses in 2014: link.reuters.com/pap87v
Asset performance in 2014: link.reuters.com/gap87v
Today's European research round-up
(additional reporting by Francesco Canepa; Editing by John