(Sharecast News) - European shares were mixed by midday on Thursday as worries about the imposition of tariffs by US President Donald Trump continued to weigh on investors' minds, with automakers taking a hit as levies took effect.
The pan-regional Stoxx 600 index was up 0.2%, reversing earlier losses. Meanwhile, Germany's DAX - which has jumped in recent days on hopes of higher defence and infrastructure spending by the incoming government - was down 0.5%, paring earlier losses. France's CAC 40 was flat.
US tariffs of 25% on steel and aluminium imports took effect on Wednesday, leading Canada to impose 25% retaliatory duties on more than $20bn worth of US goods. The European Union also vowed to impose counter-tariffs on €26bn worth of US imports beginning in April.
Trump said on Wednesday that he would respond to the countermeasures. "Whatever they charge us with, we're charging them," he said.
On the macro front, data released by Eurostat showed that eurozone industrial production rose 0.8% on the month in January, coming in above expectations for a 0.6% jump.
ING analyst Bert Colijn said: "While volatile, the January industrial production data does suggest that industrial activity may be stabilising after a long decline that started in 2023. The January production level was the highest since August last year and has been mainly driven by stronger capital and intermediate goods production while energy and consumer goods production posted declines.
"By country, the increase was mainly driven by stronger German production while France and Spain saw declines."
In equity news, vehicle manufacturers were sharply lower, with Daimler Truck, Volvo, Saab and Iveco all weaker. Parts supplier Valeo was also down.
Hugo Boss shares fell as the fashion brand issued a cautious growth forecast for the year, citing "macroeconomic and geopolitical volatility" and continued weakness in China.
Shares in Allegro surged as the Polish e-commerce platform said it expects its earnings to rise 8%-12% in its home market this year and proposed a share buyback of around 1.4 billion zlotys. Fourth-quarter earnings also beat expectations.
Novo Nordisk was trading higher after Kepler Cheuvreux upgraded the shares to 'buy' from 'hold'.