European Shares Remain Steady Amid Anticipation of Powell’s Jackson Hole Speech

European shares opened flat on Monday after a significant weekly rise. Investors are focused on U.S. Federal Reserve Chair Jerome Powell's upcoming speech at Jackson Hole for interest rate cut hints. Defence stocks led declines as Germany plans to limit military aid to Ukraine due to budget restrictions.

European shares opened flat on Monday, maintaining the momentum from their best week in three months, as investors braced for a data-heavy period. The main event on the radar is U.S. Federal Reserve Chair Jerome Powell’s anticipated speech at the Jackson Hole summit, which could offer clues on interest rate adjustments.

The pan-European STOXX 600 index held steady at 511.38 points as of 0715 GMT, following its strongest weekly performance since early May. Defence stocks such as Rheinmetall, BAE Systems, Saab Ab, Thales, Leonardo, and Dassault Aviation saw declines ranging from 1.4% to 4.3% after reports emerged that Germany would limit military aid to Ukraine due to budget constraints.

Investors are also awaiting flash Purchasing Managers' Index (PMI) data from France, Germany, Britain, and the Eurozone, alongside U.S. PMI numbers and initial jobless claims data expected later in the week. However, the central focus remains the global central bank gathering in Jackson Hole, Wyoming, where Powell’s remarks on Friday are likely to outline the Fed's future monetary policy. Meanwhile, shares of Nexans dropped by 3.8% after Goldman Sachs downgraded the French power cable supplier’s stock rating to 'Neutral' from 'Buy'.