European shares rise at the open, supported by the rise in banking shares

European shares rose at the open on Monday, with banking stocks rising for a third consecutive session on bets that the European Central Bank will raise interest rates dramatically.

The pan-European Stoxx 600 index rose 0.2 percent to continue rising after posting its first weekly gain in four weeks on Friday.

The banking sector index rose 1.1 percent by 0715 GMT, extending its gains since Thursday, after the European Central Bank raised interest rates unprecedentedly by 75 basis points and pledged further increases. Many banks expect another increase of 75 basis points in October.

Investors also followed developments regarding the looming energy crisis in Europe. EU energy ministers tasked Brussels on Friday with drafting proposals within a few days to cap the revenues of non-gas energy producers and help keep energy companies operating.