Thanks for your input jwatte.
I didn’t get your approach to work. I think it was a bit too advanced for me.
I used another approach:
I still rotate around the Z-axis with my Mouse X input via “AddActorWorldLocation”.
For the rotation around the Y-axis, I attached a sphere component to my character/first person camera.
I attach the picked up object to the center of the sphere component and use “AddLocalRotation” to the Y-axis on the sphere component.
So since the picked up object is a child of the sphere component, it will rotate accordingly.
Thanks for all the answers!