European shares jump, supported by hopes of a slowdown in the Federal Reserve’s rate hike

European shares jumped on Monday, boosted by hopes the Federal Reserve will slow the pace of interest rate hikes, as investors braced for a busy week that includes an important European Central Bank interest rate decision.

The pan-European STOXX 600 index rose 1.3 percent by 0708 GMT, with the travel, leisure, retail and banking sectors leading the gains.

Wall Street’s main indexes rebounded on Friday after a report that the Federal Reserve is likely to discuss raising interest rates by a lower rate in December.

However, the UK’s main FTSE 100 index underperformed with the pound rising after news of Boris Johnson’s withdrawal from the Prime Minister’s job, likely paving the way for Rishi Sunak.

Meanwhile, Italian shares rose 1.4 percent after Georgia Meloni was sworn in to become Italy’s first female prime minister on Saturday.

Among corporate stocks, Philips shares rose 1% after the Dutch medical equipment company said it expected to cut about 4,000 jobs in an effort to simplify the system.

Shares of Dutch tech investment firm Prosus fell nearly 10 percent, tracking the poor performance of Hong Kong tech giants, after the leadership team unveiled by Chinese President Xi Jinping raised fears that economic growth was being sacrificed for ideological-driven policies.