European stocks hold steady ahead of key Federal Reserve speech

(MENAFN) European stocks showed a modest increase on Friday as investors remained cautious ahead of a highly anticipated speech by U.S. Federal Reserve Chairman Jerome Powell. The pan-European STOXX 600 index edged up by 0.1 percent to 516.28 points as of 0709 GMT, following its peak for the month in the previous trading session. This uptick positions the index for a third consecutive weekly gain, marking its longest streak of such gains in nearly five months. Market participants are closely watching Powell’s upcoming address at a symposium in Jackson Hole, Wyoming, scheduled for 1400 GMT, for insights into the potential timing and extent of future U.S. interest rate cuts.

The British Financial Times index also saw a 0.3 percent rise, supported by gains in various sectors. Specifically, the oil and gas sub-index experienced a 0.7 percent increase, buoyed by higher oil prices. Additionally, auto stocks rose by 0.6 percent following discussions between China's commerce ministry and automakers about potentially raising tariffs on large gasoline-powered vehicles. However, not all stocks fared well, with Nestle being the biggest decliner. The Swiss food giant’s share price dropped by 3 percent after the announcement that Laurent Freixe, a veteran executive vice president, would replace Mark Schneider as CEO.  

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