European stocks climbed for the third consecutive session on Friday as investors anticipated Fed Chair Jerome Powell's Jackson Hole speech, hoping for confirmation of U.S. rate cuts commencing in September.
With recession risks looming over the U.S. economy and inflation pressures easing, markets currently anticipate that the Federal Reserve will implement three quarter-point rate cuts at its remaining meetings in 2024.
Bank of England Governor Andrew Bailey is also set to speak at the symposium.
In economic news, data from France's statistical office INSEE showed a stronger-than-expected improvement in confidence among French manufacturers for August. The manufacturing sentiment index rose to 99 from June's 43-month low of 95.
The pan-European STOXX 600 index edged up 0.2% to 516.64, marking its highest level this month. Germany's DAX gained 0.5%, France's CAC 40 increased by 0.4%, and the U.K.'s FTSE 100 was up by 0.2%.
In corporate developments, Nestle shares dropped 2.2% following the announcement that CEO Mark Schneider would be replaced by veteran executive Laurent Freixe. Unilever shares saw a slight increase after the company recalled 137,000 cases of its single-serve Popsicle Jolly Rancher Frozen Confection Pop products due to concerns that they may contain milk.
Energy giants BP Plc and Shell saw their shares rise by 0.7% and 0.2%, respectively, as oil prices extended overnight gains but were still on track for a weekly loss amid U.S. and Chinese demand concerns.
