A rally in technology stocks helped lift European shares on Monday after US President Donald Trump granted exclusions from China tariffs on smartphones and computers, providing markets a breather following a turbulent week of sharp fluctuations.
The pan-European STOXX 600 was up 1.6% by 0709 GMT, after registering its third consecutive week in the red on Friday.
Weeks of back-and-forth over tariffs have rattled global markets, dragging the benchmark index down roughly 12% from its record closing high.
Shares of chip-related companies Infineon, ASML , and BE Semiconductor rose between 3.5% and 4.5%.
The European technology stocks rose 2.4% while banks added 2.6%.
However, uncertainty remained as Trump said on Sunday that tariffs on semiconductors would be announced over the next week and a decision on phones would be made “soon”.
European shares down for third week after tariff whiplash
All regional indexes were trading higher, with trade-exposed Germany gaining 1.7%, while France, Spain, and the UK were up between 1.4% and 1.7%.
The European Central Bank is set to hold its policy meeting on Thursday, with markets widely anticipating a 25-basis-point rate cut.
Investors will also be paying close attention to policymakers’ assessments of how tariffs are affecting the economic outlook.