LONDON (Reuters) - European stocks managed a modest rise on Friday, recovering from the previous session's sharp fall thanks to a recovery in oil prices, while weak results from Michelin and Bouygues reignited investors' concerns about autos and construction stocks.
The leading index of euro zone stocks <.STOXX50E> rose 0.2 percent by 0727 GMT while the pan-European STOXX 600 <.STOXX> was up 0.1 percent.
Italian stocks tumbled 0.4 percent after a ramp-up in rhetoric from the European Commission with Brussels sending Rome a letter demanding an explanation for its budget plans which represented an "unprecedented" breach of EU fiscal rules.
Italy's bank stocks index <.FTIT8300> tumbled 1.2 percent.
As results flowed in, some trends were discernable including companies flagging slower growth in China, weaker car demand, and issues in the construction sector.
Shares in tyre maker Michelin
French conglomerate Bouygues
Swedish builder Skanska
Overall the construction & materials sector <.SXOP> fell 0.3 percent, its second day of declines after a profit warning from Heidelbergcement on Thursday hit it hard.
Among gainers, M&A was a driver for UK retail property developer Intu Properties
(Reporting by Helen Reid; Editing by Josephine Mason)