Technology stocks rally, boosted by chipmakers
UBS rehires Sergio Ermotti as CEO
Aroundtown shares fall to new record low

March 29 Reuters European shares rose on Wednesday, echoing an upbeat mood in Asian markets following Chinese tech giant Alibaba39;s breakup plans, while strong outlook from chipmaker Infineon and a CEO change at Swiss bank UBS further aided the mood.

The benchmark STOXX 600 index rose 0.7, largely in line with gains in Asian equities.

UBS Group AG gained 1.7 after the lender announced that Sergio Ermotti will take the helm to steer its takeover of smaller peer Credit Suisse.

Credit Suisse climbed 1.4, while financial services and banking indexes rose between 0.8 and 1.

I can see why the market has stabilised and it39;s true that there are some slightly comforting factors. The Fed bets have been repriced down quite aggressively in the past few weeks and investor positioning is very defensive, said Vincent Chaigneau, head of research at Generali Investments.

But what is going to dominate is cyclical deterioration and aftershocks from the banking stress. It39;s very likely that we see a credit crunch with bank lending standards tightening much further.

The benchmark STOXX 600 was headed for monthly losses, with banks set for a nearly 16 slump after the collapse of two U.S. midsized lenders and the takeover of Credit Suisse fuelled concerns about the health of the banking sector.

Still, signs of economic resilience and hopes of major central…