LONDON (Reuters) - Autos stocks were the outlier in a continued relief rally in European shares on Thursday, sinking after German carmaker Daimler (DE:DAIGn) warned profit would be hit by higher tariffs.
The autos sector sank 1.4 percent to a nine-month low while the pan-European STOXX 600 (STOXX) gained 0.4 percent by 0730 GMT, riding on a wave of gains in Asian markets and Wall Street as no new salvos were exchanged in an ongoing U.S.-China trade spat.
Equity markets have been relatively resilient in the face of mounting trade concerns but fell broadly this week as U.S. President Donald Trump threatened additional tariffs on $200 billion worth of Chinese goods.
Daimler became the most high-profile European firm yet to factor higher tariffs into its outlook, warning profits would be hit by Chinese tariffs on car imports from the U.S.
Daimler (DE:DAIGn) shares fell 2.8 percent, BMW (DE:BMWG) fell 1.9 percent and Volkswagen (DE:VOWG_p) fell 1 percent. Tyre maker Continental (DE:CONG) fell 1.3 percent.
France's Peugeot (PA:PEUP) fell 1.3 percent, a top CAC 40 loser, while auto supplier Valeo (PA:VLOF) declined 0.5 percent.
Germany's DAX (GDAXI) underperformed peers but still managed a 0.2 percent gain despite the carmakers' losses.
Healthcare stocks were the top boost to the index as Novo Nordisk (CO:NOVOb) jumped 4.4 percent to the top of the STOXX after the pharma company announced trial results for its oral diabetes drug.
Consumer staples stocks such as British American Tobacco (L:BATS), Unilever (L:ULVR), ABInBev (BR:ABI) and Nestle (S:NESN) were also top drivers of Europe's gains. The dollar earners have benefited from the recent strength in the dollar.