France's blue-chip index CAC 40 up after leftist election lead
** French blue-chip CAC 40 index .FCHI rises 0.86% by 0835 GMT with banks and construction leading gains, after France's leftist alliance unexpectedly took the top spot in Sunday's elections
** Investors were concerned about the potential for a new tax on French infrastructure stocks or nationalization if right-wing National Rally (RN) gained relative or absolute majority, J.P.Morgan says
** "We view the thrust of the New Popular Front's agenda, promoting infrastructure investment and environmental commitments, as demand positive for the likes of Vinci SGEF.PA and Eiffage FOUG.PA," Jefferies writes
** Banks Credit Agricole CAGR.PA, which Exane BNP Paribas upgrades to "outperform", and Societe Generale SOGN.PA rise 2% and 1.8% respectively
** Shares in Vinci, Safran SAF.PA and Bouygues BOUY.PA are up around 2%
** CAC 40 has fallen 2.5% since June 10, day after France's President Emmanuel Macron called for snap elections
Reporting by Dagmarah Mackos
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