European shares rise after a big sell-off

European shares rose on Thursday, supported by bank shares, after markets showed signs of recovering from a sharp sell-off caused by bets on a major interest rate hike worldwide.

The pan-European Stoxx 600 index rose 0.3 percent by 0711 GMT, after falling for two consecutive days.

And US inflation data caused a wave of selling in global markets this week, as it reinforced expectations that the Federal Reserve (the US central bank) will raise interest rates by another 75 basis points next week.

The banking sector index rose 1% and was among the top gainers, with banks anticipating the largest possible gain from raising interest rates. At the same time, Morgan Stanley stated that this is a positive thing for banks in the region.