European chip stocks regain some ground after last week's 'April flashback'

Shares in European chip stocks pare losses after getting hammered last week on fears of a new trade war flaring up between U.S. and China

STOXX Europe Technology index .SX8P is up 1.4% after falling 3% on Friday, bring weekly losses to 4%

"From my understanding, overnight China clarified that its rare earth export controls are not a full ban and that compliant applications will still be approved, easing the panic that triggered last week's sell-off," Abed Jarad from mwb-research says

Jarad also points to U.S. President Donald Trump's conciliatory comments on social media over the weekend, which helped to calm the sentiment

"It is essentially an 'April flashback' with traders unwinding the tariff-war scare and rotating back into risk-on mode," he says adding that investors increasingly see tariff threats as a bargaining chip

Siltronic WAFGn.DE, Infineon IFXGn.DE, Aixtron AIXGn.DE and ams OSRAM AMS.S rise between around 2% and 5%

BESI BESI.AS, ASMI ASMI.AS, ASML ASML.AS and STMicroelectronics STMPA.PA are up between 2% and 3.4%

Soitec SOIT.PA and X-FAB XFAB.PA rise 2.6% and 4.4%, respectively