European shares fall as investors weigh trade war fears; Vodafone tumbles

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Feb 4 (Reuters) - European shares fell on Tuesday due to losses in automobiles and telecom-related stocks, as investors grew unsettled over fears of a trade war between top global economies, the U.S. and China.

The pan-European STOXX 600 index .STOXX was down 0.3% as of 0819 GMT. The benchmark had logged its biggest single-day drop in more than one month on Monday.

Automobiles .SXAP lost about 1%. Telecommunication .SXKP fell 0.8% after Vodafone dropped 5.6% after the mobile group reported another deterioration in Germany in its third quarter.

China announced tariffs on some U.S. imports in retaliation for Washington's 10% additional levies on Beijing, reigniting concerns of a trade war between the economies.

Providing slight relief, U.S. President Donald Trump on Monday agreed to a 30-day pause in 25% tariffs on Mexico and Canada, in return for concessions on border and crime enforcement with the two neighbouring countries.

Capping the overall fall, Infineon IFXGn.DE jumped 11.1% after the German chipmaker posted stronger than expected first-quarter revenue and slightly raised its full-year revenue outlook.

The earnings helped boost technology index .SX8P that added 1.41%.

Banks .SX7P rose 0.3%. France's BNP Paribas BNPP.PA rose 1.6% after it reported a forecast-beating jump in net income in the fourth quarter, but lowered a key profit target for 2025.