European bourses tracked moderately lower midday Thursday as traders considered President Donald Trump's comments that 25% tariffs on European imports are pending. Retail stocks bucked trends to gain, while food and tech issues lagged. Rolls-Royce shares rose 19.7% midday after the aerospace manufacturer posted earnings and guidance, boosted dividends, and announced a stock buyback program.
Investors also eyed Wall Street futures signaling green, but choppy closes overnight on Asian exchanges. The pan-continental Stoxx Europe 600 Index was off 0.4% mid-session. The Stoxx Europe 600 Technology Index was off 1.2%, and the Stoxx 600 Banks Index was flat. The Stoxx Europe 600 Oil and Gas Index was steady, but the Stoxx 600 Europe Food and Beverage Index declined 0.9%.
The REITE, a European REIT index, fell 0.3%, but the Stoxx Europe 600 Retail Index inclined 1.1%. On the national market indexes, Germany's DAX was down 0.7%, and the FTSE 100 in London was up 0.4%. The CAC 40 in Paris was off 0.2%, and Spain's IBEX 35 lost 0.3%. Yields on benchmark 10-year German bonds were higher, near 2.44%.
Front-month North Sea Brent crude oil futures were up 1.1% to $72.85 per barrel. The Euro Stoxx 50 volatility index was up 3.7% to 17.23, indicating below-average volatility for European stock markets in the next 30 days, a positive signal. A reading above 20 indicates choppier markets ahead, while below 20 suggests calmer exchanges..