Europe midday: Shares pare gains after EZ PMI data

European shares returned to action from the Easter break and had pared gains by lunchtime on the back of weaker eurozone manufacturing survey data for March.

The pan-European Stoxx 600 was up 0.06% at 513, with all major regional bourses in the green.

Eurozone manufacturing activity fell last month compared with February as demand across the single-currency block continued to fall, according to a survey published on Tuesday.

The final HCOB eurozone manufacturing purchasing managers’ index (PMI), slipped to 46.1 in March from February’s 46.5 and a preliminary estimate of 45.7. A mark below 50 indicates contraction.

In a slight not of optimism, the PMI output index at rose to 47.1 from February's 46.6) - an 11-month high.

"It’s a bit disheartening: over the last eight months, the manufacturing industry has been gradually climbing the Output PMI ladder, but it still finds itself on the basement staircase," said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.

In Germany, inflation fell in German states last month, according to preliminary data, suggesting that the national figure will continue its downward path.

In the UK, house prices rose by 1.6% in March on an annualised basis, according to a survey by the Nationwide building society, but fell 0.2% month-on-month after a 0.7% increase in February. Analysts had been looking for a 0.3% rise.

UBS shares were up after the bank unveiled a new share buyback of up to $2bn.

AstraZeneca gained after the approval of Voydeya as an add-on therapy for the treatment of a rare condition affecting red blood cells.

Reporting by Frank Prenesti for Sharecast.com