This is CNBC's live blog covering European markets.
LONDON — European markets closed mixed on Friday as traders reacted to comments from Federal Reserve Chair Jerome Powell at the annual Jackson Hole symposium.
The pan-European Stoxx 600 ended flat for the session, paring earlier gains, with sectors and major bourses pointing in opposite directions.
The continental blue chip index closed the Thursday session down 0.4% as global momentum on the back of U.S. chipmaker Nvidia's blowout earnings faded throughout the day.
Shares in Asia-Pacific retreated across the board on Friday, with Japan's Nikkei 225 leading losses as markets prepared to hear from a host of Fed speakers at the central bank's Jackson Hole symposium.
In prepared remarks for his keynote address at the meeting, Fed Chair Jerome Powell warned that further interest rate increases could be necessary in the fight against inflation.
"We are prepared to raise rates further if appropriate," Powell said, before adding that the U.S. cental bank intends "to hold policy at a restrictive level until we are confident that inflation is moving sustainably down toward our objective."
Money Report
U.S. stocks fell after Powell's remarks. Wall Street closed out a dismal regular trading session on Thursday. Indeed, it marked the worst day for the Dow since March, while the S&P 500 and Nasdaq had their biggest one-day losses since Aug. 2.
Powell says Fed 'prepared to raise rates further’ in hawkish Jackson Hole speech
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Federal Reserve Chair Jerome Powell on Friday warned further interest rate increases could be necessary in the fight against inflation.
In prepared remarks for his keynote address at the Kansas City Fed's annual retreat in Jackson Hole, Wyoming, Powell said, "Although inflation has moved down from its peak — a welcome development — it remains too high."
"We are prepared to raise rates further if appropriate," Powell said, before adding that the U.S. cental bank intends "to hold policy at a restrictive level until we are confident that inflation is moving sustainably down toward our objective."
— Sam Meredith
Novo Nordisk plans to launch weight loss drug Wegovy in more countries
Novo Nordisk plans to launch its wildly popular weight-loss drug Wegovy in more countries in a "constrained" fashion, CEO Lars Fruergaard Jorgensen reportedly told a Reuters event on Friday.
The injectable drug has proven hugely popular in the U.S., and studies have shown it significantly reduces heart attacks and other cardiovascular problems.
Novo Nordisk shares were down 1.3% by early afternoon in Europe.
- Elliot Smith
Watches of Switzerland shares plunge after Rolex-Bucherer deal
Shares for the Watches of Switzerland Group plunged by more than a quarter on Friday morning, heading for the company's worst day ever, after luxury watchmaker Rolex announced a deal to buy watch retailer Bucherer.
By early afternoon trade in Europe, the London-listed group's share price had recovered slightly but was still down more than 20% on the day.
In a statement, Watches of Switzerland insisted that the acquisition was solely about succession planning for Rolex — which is breaking with its modus operandi of acting solely as a manufacturer — and did not represent a "strategic move" into the retail market.
- Elliot Smith
German business sentiment darkens further
German business sentiment darkened further in August, according to the Ifo Institute's business climate index, with readings across manufacturing, services, trade and construction all declining.
The overall index slipped to 85.7 points in August from 87.4 points in July, a fourth consecutive fall.
"Assessments of the current situation fell to their lowest level since August 2020. Moreover, companies are increasingly pessimistic about the months ahead. The German economy is not out of the woods yet," said Ifo Institue President Clemens Fuest.
- Elliot Smith
A cautious open in Europe
European markets made a muted start to Friday's trade.
The pan-European Stoxx 600 hovered around the flatline in early trade, with tech stocks shedding 0.4% while oil and gas shares added 0.6%.
Here are the opening calls
Britain's FTSE 100 is set to open around 6 points higher at 7,340, while Germany's DAX is seen around 31 points lower at 15,590 and France's CAC 40 is slated to slip by around 14 points to 7,200, according to IG data.
German economy flatlines in the second quarter
The German economy stagnated in the second quarter, the federal statistics office said on Friday, confirming preliminary estimates published late last month.
The German GDP posted zero growth for the three months to the end of June, compared to the previous quarter, when Europe's largest economy suffered a winter recession.
- Elliot Smith
CNBC Pro: AI, EVs and more: Goldman names 5 'compelling' stocks to play major themes — giving one 60% upside
Analysts at Goldman Sachs named five stocks to play themes including artificial intelligence, electric vehicles and energy-efficiency, placing two on the conviction list.
The picks are buy-rated names "whose exposure to enduring themes complements a compelling equity story," according to a research note published Aug. 21.
CNBC Pro subscribers can read more here.
— Lucy Handley
CNBC Pro: This U.S. stock is a 'formidable business' with a 'really exciting runway' for growth, analyst says
Hannah Gooch-Peters of Sanlam Investments UK tells CNBC Pro Talks about a company that has an "amazing, diversified business" which helps earnings growth be consistent.
It's a stock with consistent earnings growth, recurring revenue and high barriers to entry, according to the global equity investment analyst.
The stock is up nearly 12% this year, and analysts covering it give it potential further upside of about 16%, according to FactSet.
CNBC Pro subscribers can read more here.
— Weizhen Tan
