European equities reversed earlier gains to trade down by mid-morning on Friday as investors eyed mixed earnings and data from the U.S., ongoing volatility in Chinese equities and slipping commodity prices.

The pan-European STOXX 600 opened in mildly positive territory, up around 0.2 percent, but pared earlier gains to trade 0.3 percent lower.

Britain's FTSE 100 opened in positive territory but was trading down around 0.2 percent, while the German DAX was hovering around the flatline. The French CAC was around 0.2 percent higher.

Earnings continued in full swing on Friday as a number of big companies reported results.

Shares in Airbus jumped to the top of the CAC, up around 3.6 percent, after it reported a rise in first half core operating profit and revenue driven by strong uptake of helicopters and passenger jets.

However, the plane maker also reported a further charge because of development delays in its new A400M, caused by a fatal crash in May.

BNP Paribas, traded around 2.5 percent higher by mid-morning. The lender reported better-than-expected profit on Friday, as the strong dollar gave its earnings a boost.

Shares in French retailer Carrefour saw a 0.3 percent pop after it said its recurring operating profit rose 2.6 percent to 726 million euros in the first half of 2015, beating market expectations.

Outside of France, Lloyds Banking Group shares fell to near the bottom of the FTSE 100, down just over 1.2 percent.

The part-state-owned bank said that underlying profit for the first half of 2015 rose 15 percent year-on-year to £4.4 billion. However, it set aside a further £1.4 billion ($2.2 billion) to compensate customers for its mis-selling of loan insurance.

ArcelorMittal, the world's largest producer of steel, swung to $200 million in net profit for the second quarter after recording a $728 million loss in the previous quarter. The company also warned that steel imports from Russia and China could threaten its business. Shares traded around 0.6 percent higher.