* STOXX up 1.9 pct, DAX up 1.7 pct, FTSE 100 up 2.21.4 pct
* Tech sector rises 1.8 pct
* Xaar drops after profit warning (Adds closing prices)
By Helen Reid
LONDON, Dec 28 (Reuters) - European shares clawed backlosses on Friday, buoyed by a bounce on Wall Street as aturbulent week drew to a close and investors licked their woundsafter the region's benchmark STOXX 600 sank to its lowest levelsince U.S. President Donald Trump's election.
The STOXX 600 .STOXX ended the day up 1.9 percent, itsbiggest daily performance since last April.
The pan-European benchmark had touched a low of 327.34points on Thursday, its worst since Nov. 9, 2016.
The rise on the continent's stock market didn't match,however, the past two-day surge on U.S. indexes that saw thebenchmark S&P 500 index gain 5.9 percent, its best performancesince late August 2015.
Christmas week has been a wild ride for investors, with U.S.and European stocks suffering significant losses on Dec. 24.
Threats continued to lurk with a U.S. government shutdownongoing after a brief session of Congress on Thursday afternoontook no steps towards ending it.
"It sounds increasingly contrarian but my feeling is that,particularly if we get the transmission mechanism of a lowerdollar, stocks outside the U.S. are set up for a good 2019,"said Chris Bailey, strategist at Raymond James.
Overall, analysts expect earnings from companies in Europe'sSTOXX 600 to grow 8.4 percent in 2019, the latest Refinitiv IBESestimates show. That's more than the 7.6 percent earnings growthexpected for the S&P 500 .SPX .
"My feeling is corporate earnings in Europe will surprise afew people in 2019," said Bailey. "Earnings growth of 8.5percent is more credible for Europe than for the S&P 500, whichis a regime shift."
All sectors in Europe rose during the session and among themtechnology .SX8P jumped 2.4 percent.
Chipmaker AMS AMS.S topped the STOXX with a 10.2 percentleap.
Tech has been one of the worst-hit parts of the market asinvestors grew scared that waning economic growth and aU.S.-China trade war would suck the momentum out of high-growthcompanies.
Banks .SX7P also rallied, up 2.3 percent since hittingtheir lowest point since August 2016 on Thursday.
One of the most notable mover was UK inkjet printertechnology maker XaarXAR.L , whose shares fell 8 percent totheir lowest in more than eight years after a profit warning.
(Reporting by Helen Reid; Editing by Toby Chopra) ((mailto:Helen.Reid@thomsonreuters.com; +44 20 7542 0402;))The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
