European stocks advanced modestly in recent rimes as investors awaited Federal Reserve Chair Jerome Powell’s keynote address at the Jackson Hole symposium for signals on U.S. monetary policy.

The pan-European STOXX 600 index rose 0.2%, positioning it for a third consecutive weekly gain despite mixed economic signals.

Traders focused on Powell’s scheduled remarks for insight into potential September rate cuts, following recent cautious commentary from Fed officials.

The speech comes amid new economic headwinds as revised data showed Germany’s economy contracted 0.3% in Q2 2025, worse than initially reported, with industrial production underperforming expectations.

Market analysts suggested Powell would likely maintain a balanced tone, acknowledging persistent inflation while reaffirming data-dependent policy approaches.

IG Group’s Axel Rudolph noted, “Powell will probably make remarks which are quite neutral and say that they’re data-led,” though markets could see a relief rally if his comments ease recent concerns.

Corporate developments drove individual outperformers, with AkzoNobel surging 5.2% after activist investor Cevian Capital acquired a 3% stake.

Standard Chartered gained 3.5% following a favorable U.S. Department of Justice ruling, while defense firms Renk Group and Hensoldt rose on Citigroup rating upgrades.

The session also reflected ongoing EU-U.S. trade negotiations, with Brussels seeking reduced tariffs on automotive exports and preferential rates for wine and spirits.

The broader market tone remained cautious ahead of Powell’s address, which could significantly influence global risk sentiment and rate expectations.

Source; Reuters.