Europe midday: Shares stabilise, Spanish stocks hit by weakness in Santander, Caixabank

"The deterioration in a trio of Chinese PMI surveys has done little to boost the economic outlook for a country which has only recently seen its critical manufacturing sector move out of contraction," said IG's Josh Mahony.

The momentum in stocks was also blunted by a poorly received quarterly update from US internet giant Alphabet overnight, with the company's shares indicated to begin trading over 8% weaker on Tuesday.

As of noon, the benchmark Stoxx 600 was trading lower by 0.11% to 390.92, alongside a gain of 0.04% to 12,333.44 for the German Dax while the FTSE Mibtel was up by 0.32% to 21,859.22.

From a sector standpoint, shares of Basic Resources companies were faring worst, with the Stoxx 600 sector gauge retreating 1.6% to 465.76.

Weighing on the Basic Resources space, the closely-followed Caixin China factory sector Purchasing Managers' Index printed at 50.2 for April, which was down from a reading of 50.8 in March and noticeably weaker than the 50.9 that economists had anticipated.

Spain's Ibex 35 meanwhile was down by 0.13% to 9,504.70, dragged down by losses in shares of Caixabank, Telefonica and BBVA.

To take note of, overnight the head of Spain's main business lobby, Antonio Garamendi, called on the country's main centre and centre-right parties to facilitate the Socialist PSOE's attempts to form a government, given the need to ensure political stability in the country and to focus energies on cementing hard-won productivity gains.

Boosting investor sentiment on Tuesday, Eurostat reported that in seasonally-adjusted terms, the Eurozone's gross domestic product expanded at a quarter-on-quarter clip of 0.4% during the first quarter (consensus: 0.3%), helped by stronger-than-expected readings in Spain and Italy.

Those figures came alongside others showing an unexpected drop in the euro area rate of unemployment from 7.8% in February to 7.7% for March.

Meanwhile, in Germany, the Federal Labor Agency said that joblessness remained at a post-reunification low of 4.9% in April.

In parallel, Germany's Federal Office of Statistics reported that harmonised consumer prices soared in April, with the year-on-year rate of consumer price gains accelerating from 1.4% in the month before to 2.2% (consensus: 1.7%).

Shares of Santander fell after Europe's largest lender posted a 10% drop in net income to €1.84bn (consensus: €1.83bn) alongside weaker-than-expected net interest income of €8.68bn.

Spanish rival BBVA was also under the cosh after posting first quarter net income of €1.16bn, down 13% from a year ago and a shade below the €1.7bn forecast by analysts.

But it was CaixaBank that was at the bottom of the pile on the IBEX after reporting a 24% decline in net profits to €533m.

Telefonica was also on the back foot after analysts at Kepler downgraded its shares to 'reduce', arguing "that increased operating risks in Spain and elsewhere are not priced-in."

Airbus shares were lower as well, albeit after a torrid run of late, with investors unimpressed by the 3,821% rise adjusted operating profits to €549m on the back of a 24% jump in sales to €12.55bn.