Provisional results confirm that mainstream conservatives led by Friedrich Merz won Germany's national election, while a far-right party surged to become the nation’s second-largest.

European shares were largely unchanged on Monday, while Germany's benchmark index rose as investors greeted the widely expected victory of Friedrich Merz-led opposition conservatives at the national election.

Germany's conservatives won the national election on Sunday, while the far-right Alternative for Germany came in second, its best ever result.