European shares were little changed in mid-morning trade on Monday with losses among auto sector stocks led by Continental and Renault offset by gains among energy plays.

The FTSEurofirst 300 index was down 0.05 per cent, having closed up 0.3 per cent on Friday, and the euro zone’s blue-chip Euro STOXX 50 fell 0.01 per cent.

Traders said markets were struggling to find a clear direction and some profit-taking was kicking in, although the overall mood was good as the outlook for US interest rates became clearer following a stronger-than-expected jobs report last week.

“For European stocks an added bonus constitutes the renewed weakness in the euro resulting from a shift in US interest rate expectations, making them not only more competitive but also more attractive as an investment,’’ Pegrine & Black trader Markus Huber said.

Continental fell 4.5 per cent as investors cashed in profits after the German tyre maker revised up its full-year profit outlook following an 11 per cent quarterly earnings gain on higher car demand in Europe and North America.

A trader said the quarterly report from the Continental was solid, albeit below analysts’ expectations, but investors were taking profit as the higher guidance had already been priced in.

Renault fell 2.3 per cent after French Prime Minister Manuel Valls ad said on Sunday that the French government did not want a merger between the car maker and its Japanese partner Nissan.

Atlantia fell 2.4 per cent after the Italian operator of highways and airports said it had broken off talks with international investors to sell a minority stake in its Rome airport unit.

German airline Lufthansa fell 2.3 per cent after the company announced hundred of flight cancellations due to a strike action.

Energy stocks were the best performing sector with a gain of 1 per cent, as oil futures rose above $47.50 a barrel after OPEC said it expected global demand to remain strong next year.

Ericsson rose 2.4 per cent after the telecoms equipment maker and networking group Cisco Systems agreed a partnership expected to generate revenues of $1 billion for each company by 2018.

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