European shares rise as investors await British financial plan

European shares rose on Monday, boosted by the rise of energy and utilities companies, while investors awaited Britain’s financial plan and earnings reports for evidence of corporate strength amid concerns about rising interest rates and a possible recession.

The pan-European Stoxx 600 index rose 0.3 percent, extending its gains for the third consecutive session.

European stocks have suffered losses in the past few weeks, with investors fearing the possibility of a recession due to strong measures taken by the central bank to tame inflation. The recent political turmoil in Britain has raised concerns.

In London, the FTSE 100 index rose 0.3 percent before the economic plans of the new Finance Minister Jeremy Hunt, which aims to stop the significant loss of confidence in the government of Prime Minister Liz Terrace.

The Terrace backed away from plans to cut taxes on Friday, sacking Finance Minister Kwasi Koarting to replace Hunt in a move to restore some calm in the markets.

Meanwhile, eurozone government bond yields fell on Monday, tracking British bonds, but still far from their highest levels in more than a decade.

Most of the Stoxx 600 sectors rose, with energy stocks gaining. The oil and gas sector increased 0.6 percent as oil prices rose, driven by hopes of improving demand from China.

The banking sector rose 0.5 percent.

Among the individual stocks, Credit Suisse shares rose 0.8 percent. The bank agreed to pay $495 million to settle the lawsuit against it in the United States.