European stocks slipped slightly on Friday as investors turned cautious ahead of Federal Reserve Chair Jerome Powell’s highly anticipated speech for signals on future monetary policy.
The pan-European STOXX 600 index dipped 0.1% as of 07:02 GMT, though it remained on track for its third straight week of gains. Regional markets were mixed, with Germany’s DAX index down 0.2%.
Germany’s economy contracted more than expected in the second quarter of 2025, shrinking by 0.3% as industrial output underperformed initial estimates, according to official data.
Attention now shifts to Powell’s remarks at the Jackson Hole symposium, after recent comments from Fed policymakers suggested limited appetite for a rate cut in September.
Meanwhile, the European Union continues to push for lower U.S. tariffs following a recently finalized trade deal. The EU said it would seek to ensure reduced duties on car exports are applied retroactively from August 1, while also pressing for preferential treatment on wine and spirits.
In corporate news, shares of AkzoNobel climbed 4.3% after activist investor Cevian Capital disclosed a 3% stake in the Dutch paints manufacturer, according to a filing with market regulator AFM.
