European shares rise with the support of the banking and energy sectors

European shares rose on Tuesday, boosted by the continued recovery of energy stocks on the back of higher oil prices and gains in banking shares after hawkish comments from the US Federal Reserve chairman.

The pan-European Stoxx 600 index rose 0.2 percent after a tepid start to the week. The European oil and gas sector index rose 0.8 percent, while the banking index rose 1.1 percent.

Federal Reserve Chairman Jerome Powell said on Monday that the central bank should move “quickly” to raise interest rates and possibly “more aggressively” to combat severe inflation after last week’s 25 basis point interest rate hike took its toll on markets.

Russia’s invasion of Ukraine triggered a surge in commodity prices, including oil and industrial minerals, amid fears of supply disruptions.