Europe midday: Autos dented as euro powers ahead
Stocks were significantly lower, with the Dax at three-month lows, as strength in the single currency weighed on exporters' shares, especially on those of automakers.
Weakness in shares of Microsoft and E-Bay following their latest results published overnight were doing little to help matters.
On a more positive note, also on Thursday evening the IMF agreed 'in principle' to provide another $1.8bn towards a rescue for the Mediterranean country, conditional on other euro area nations providing debt relief.
As of 1330 BST, the benchmark Stoxx 600 was 0.37% or 1.44 points lower with the Dax down by 0.91% or 112.03 points to 12,334.42, while the French Cac-40 was off by 0.64% or 33.02 points to 5,166.13.
From a sector standpoint, shares in automobile manufacturers were doing worst, with the Stoxx 600 gauge for the group down by 2.66% to 545.90.
In parallel, euro/dollar was higher by 0.08% to 1.1643, just off its best levels in two years, even as traders eyed the scope further gains.
However, as some analysts pointed out, past a certain threshhold euro strength might push the European Central Bank's goal of meeting its inflation target further into the future. On the flip-side, currency appreciation entailed a tightening in financial conditions which was equivalent to interest rate hikes.
Commenting on the market action, Mike van Dulken, head of research at Accendo Markets said: "Germany's DAX is in the red as EUR traders ignore ECB President Draghi's attempt to talk the single currency lower yesterday.
"[...] Germany's DAX is lower due to Banks and Autos faring worse than Utilities, Industrials and Consumer names."
On the economic front, the European Central Bank's third quarter survey of professional forecasters revealed those economists had trimmed their 2017, 2018 and 2019 CPI projections for the euro area by one tenth of a percentage point, to 1.5%, 1.4% and 1.6%.
GDP forecasts for 2017 and 2018 on the other hand were revised higher by two tenths each to 1.9% and 1.8%.
Italy's Benetton family was vying with motorbike manufacturers and buyout to take over one of the country's most iconic manufacturers, Ducati, Reuters reported.
French luxury goods outfit Hermes said it expected foreign exchange tailwinds to help it keep its operating margins near the record 33.9% level reached in the first half of 2016.
In parallel, Faurecia lifted its 2017 outlook for earnings after delivering a bumper 20% increase for operating profits at the half-year stage.