European shares flat as weakness in autos negate mining gains

A 10-year high for Shanghai copper prices and a surge in other metals boosted shares of European miners, with the basic resources index climbing 0.5% to lead sectoral gains. Auto stocks took a hit, with Volkswagen AG slipping 1.1% after the Financial Times reported the company had warned managers to prepare for a bigger production hit in the second quarter due to a global chip shortage.

European stocks were largely flat on Monday as losses in automakers countered gains in miners, while investors braced for a busy week of corporate earnings and economic data.

The pan-European STOXX 600 index inched up 0.02% in early trading after it recorded its first weekly loss in eight on Friday. A 10-year high for Shanghai copper prices and a surge in other metals boosted shares of European miners, with the basic resources index climbing 0.5% to lead sectoral gains.

Auto stocks took a hit, with Volkswagen AG slipping 1.1% after the Financial Times reported the company had warned managers to prepare for a bigger production hit in the second quarter due to a global chip shortage. Austrian sensor maker AMS fell 4.3% after Credit Suisse double downgraded its stock to "underperform", citing concerns around the company potentially losing product supply deals at Apple.