Global stock markets: European stocks strengthened Monday on hopes the U.S. Federal Reserve may slow the pace of interest rate hikes, while investors adjusted for a busy week of company reports and waited for a key rate decision from the European Central Bank.

The global stock market is often volatile. The pan-European STOXX 600 is up 0.65%. Stocks in the travel sector (.SXTP), retail (.SXRP) and banks (.SX7P) led the rebound.

The major Wall Street indices rose on Friday after reports that the Fed is likely to discuss a smaller interest rate hike in December.

However, the British blue-chip FTSE 100 index was down 0.5% as the pound rose after news that Boris Johnson pulled out of the race to become Britain’s next prime minister, paving the way for his former Treasury chief Rishi Sunak.

Business activity in the eurozone contracted at its fastest pace in nearly two years in October as the cost-of-living crisis makes consumers cautious and reduces demand, S&P Global data showed Monday, adding further evidence that the bloc is entering a recession.

Meanwhile, Italian stocks added 0.4 percent after Giorgia Meloni, the first female Head of Government in Italy, was sworn in on Saturday.

Philips gained 1% early in the session after the Dutch medical device maker announced plans to cut some 4,000 jobs to streamline its organizational structure. However, they then lost their gains and fell by 0.5%.

Shares of Dutch tech investor Prosus fell nearly 13% due to weakness at Hong Kong tech giants, after the composition of Chinese President Xi Jinping’s new team reinforced fears that economic growth would be sacrificed to ideology.

Earlier, we reported that major Asian stock markets were trading in negative territory.