(Reuters) -European shares surged on Monday, poised to recoup the previous session's losses on relief after U.S. President Donald Trump delayed his threat to impose a 50% tariff on the European Union.

The pan-European STOXX 600 index rose 1% by 0710 GMT. The benchmark lost 0.9% on Friday after Trump unexpectedly called for sharp tariffs on goods from the EU, saying that negotiations with the region were not moving fast enough.

On Sunday, Trump extended the deadline for tariffs to July 9 from June 1, as he agreed after European Commission President Ursula von der Leyen told him that the 27-nation bloc needed more time to produce a deal.

The automobiles and parts index, sensitive to tariff-related pressures, rebounded by 1.4%. Mercedes gained 2.1%, BMW rose 2% and Volkswagen advanced 1.9%

Luxury stocks, highly exposed to the U.S. market, gained. Shares of Kering, LVMH and Richemont rose between 1.5% and 2.4%.

Economically-sensitive banks surged 1.5%, while technology stocks led gains among sectors, rising 1.9%.

Trading volumes were light on Monday due to public holidays in the U.S. and the UK markets. However, U.S. stock futures were up more than 1%.

Meanwhile, the week is inundated with key data from the region, with specific attention on euro zone economic sentiment, alongside German unemployment and inflation figures for May.