Tech Stocks Propel European Shares Amid U.S.-China Tariff Tensions

European shares surged as technology stocks rallied following U.S. President Trump's decision to grant tariff exclusions on smartphones and computers, calming investors after a volatile week. The STOXX 600 rose 1.6%, buoyed by gains in chip-related stocks, although uncertainty about future tariffs remains.

Technology stocks fueled a notable rise in European shares on Monday as U.S. President Donald Trump's approval of tariff exemptions on smartphones and computers from China offered a reprieve to markets shaken by recent volatility.

The pan-European STOXX 600 index climbed 1.6% by 0709 GMT, recovering some of its losses after a turbulent period where the benchmark fell approximately 12% from its peak. The fluctuation was driven by ongoing tariff disputes impacting global markets.

Chip-related companies, including Infineon, ASML, and BE Semiconductor, saw their shares rise between 3.5% and 4.5%, contributing to the 2.4% increase in European technology stocks and a 2.6% uptick in bank shares. While optimism prevailed, concerns persisted as Trump indicated impending tariffs on semiconductors and potential decisions on phone tariffs. Meanwhile, all major regional indexes, with Germany, France, Spain, and the UK, recorded increases.

(With inputs from agencies.)