By Twesha Dikshit
(Reuters) -European equities were largely subdued on Thursday as investors awaited updates from the Federal Reserve's Jackson Hole symposium for clues on the path of monetary policy.
The pan-European STOXX 600 index was flat as of 0834 GMT, while most major bourses were mixed.
Central bankers from around the world will be at the event, and the focus will remain on Fed Chair Jerome Powell's last speech at the summit in the position for hints of possible rate cuts this year.
"This year’s
Jackson Hole Symposium arrives at a complicated moment for global markets," said Daniela Hathorn senior market analyst at Capital.com.
"As policymakers descend on Wyoming’s high-altitude think tank, expectations are skewed heavily toward a dovish message. But with inflation reaccelerating and political pressures swirling, markets could be setting themselves up for a sharp hawkish surprise."
European shares are expected to close slightly higher than current levels by the end of the year, a Reuters poll found, with support from looser fiscal and monetary policy being kept in check by U.S. tariff uncertainties.
Markets drew little comfort from a survey that showed euro zone businesses saw new orders increase for the first time since May 2024 in August, helping overall activity expand at the fastest pace in 15 months despite persistent weakness in exports.
The S&P's HCOB Flash euro zone PMI rose to 51.1 in August from 50.9 in July, marking the third consecutive monthly improvement.
Defence stocks rose 1.4%, after being under pressure this week on expectations of a Ukraine-Russia peace deal.
Discussions regarding Ukraine's security in case of a peace deal with Russia continued, with unease in Germany over sending peacekeeping forces despite the Chancellor's openness to it.
Russia said attempts to answer security questions about Ukraine without Moscow's participation were a "road to nowhere."
Among other movers, WH Smith shares slumped 36% and were set for the biggest percentage drop on record after the British travel retailer lowered its full-year profit outlook for its North America division after an accounting error.
Dutch insurer Aegon added 6.8% after doubling its share buyback to 400 million euros ($466.32 million) and saying it was considering the possibility of moving its head office into the United States.
CTS Eventim dropped 18.8% after the German ticketing firm reported second-quarter results below expectations.
Aker BP added 3.1% after the oil field operator made a significant oil discovery in their Yggdrasil field area of the North Sea.
Danish biotechnology company Novonesis dropped 6.4% after quarterly results.
($1 = 0.8578 euros)
(Reporting by Twesha Dikshit and Sruthi Shankar in Bengaluru; Editing by Janane Venkatraman and Mrigank Dhaniwala)
