European Shares Flat as Investors Await Key Economic Data and Powell’s Speech

European shares opened flat on Monday, stabilizing after their best weekly performance in three months, as investors geared up for a data-heavy week. The primary focus is on U.S. Federal Reserve Chair Jerome Powell’s upcoming speech at the Jackson Hole symposium, which could provide insights into potential interest rate cuts.

The pan-European STOXX 600 index remained unchanged at 511.38 points by 0715 GMT, after recording its best week since May 6 on Friday.

Defense stocks led the declines, with companies like Rheinmetall, BAE Systems, Saab AB, Thales, Leonardo, and Dassault Aviation falling between 1.4% and 4.3%. This drop followed reports from Germany indicating that Berlin might limit military aid to Ukraine due to budget constraints.

This week, investors are closely watching the flash Purchasing Managers’ Index (PMI) data for France, Germany, Britain, and the Eurozone, along with U.S. PMI numbers and initial jobless claims data. However, the main event is the global central bank gathering at Jackson Hole, Wyoming, where Powell’s speech on Friday is expected to shed light on the Federal Reserve’s future monetary policy direction.