*

Tech, miners drive sectoral gains

*

PSI Software soars after Warburg Pincus confirms buyout

*

Big Yellow ( BYLOF ) soars as Blackstone considers buyout

*

STOXX 600 up 0.44%

By Sruthi Shankar and Pranav Kashyap

Oct 13 (Reuters) -

European shares staged a modest comeback on Monday, shaking

off Friday's bruising selloff after U.S. President Donald Trump

toned down his

aggressive trade stance

toward China.

The pan-European STOXX 600 index ticked up 0.4%,

clawing back some losses from a 1.3% plunge after Trump

threatened a 100% tariff on Chinese goods in a reprisal against

China for curbing its critical mineral exports.

Trump, known for his hardline rhetoric, adopted a

conciliatory tone over the weekend. European markets and Wall

Street recovered on easing fears of another all-out trade war.

"When it comes to tariffs, China is definitely the only

country that plays hardball with the U.S. Even though markets

are taking it in their stride. We're going to enter a period of

heightened uncertainty around tariffs once again," said Joachim

Klement, an investment strategist at Panmure Liberum.

European stocks are trading just below all-time highs reached

last week, with a thriving artificial intelligence trade and

optimism over potential U.S. rate cuts outweighing French

political chaos. However, the spectre of a renewed trade war

remains, injecting fresh volatility. Europe's so-called "fear

gauge" touched its highest level in over two months

during the session.

"Investors may have thought the tariff story had run its

course as a market catalyst, but last week showed it can still

pack a punch," said Chris Larkin, managing director, trading and

investing, E*TRADE at Morgan Stanley ( MS ).

The technology sector gained 1.8%, with a major boost

from ASML.

Basic resources jumped 3% as copper prices advanced

on hopes of easing U.S.-China trade tensions.

France's CAC 40 edged up 0.2% after Sebastien Lecornu

was reappointed as the prime minister on Friday, just four days

after he had resigned from the role.

The government must formally present a budget in the coming days

that faces a perilous path through a deeply divided parliament.

Among big movers, PSI Software surged 35.8% towards

its highest since 2021 after private equity firm Warburg Pincus

was set to buy the German software firm for more than 700

million euros ($813.26 million), confirming Reuters reports

about the deal and the offer price.

Exosens climbed 10.5% after Greek night vision

systems maker Theon International said it plans to

buy a 9.8% stake in its French peer. Theon's shares dipped

1.3%.

Big Yellow Group ( BYLOF ) jumped 15.4% after Blackstone

Europe said it was in the early stages of considering a possible

cash offer for the UK-listed self-storage company.