(Reuters) - A rally in technology stocks helped lift European shares on Monday after U.S. 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 (OTC: IFNNY ), ASML (AS: 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".

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.