European stocks fall as investors focus on ECB

European stocks fell in early trading on Friday, as investors were cautious ahead of the statements of the heads of major central banks at the Jackson Hole symposium in the United States, while the rise in bond yields continued to pressure stocks.

And by 0711 GMT, the European Stoxx 600 index was down 0.1 percent, yet it seemed headed for its first weekly gain in four weeks.

Federal Reserve Chairman Jerome Powell is scheduled to speak at 1405 GMT, while European Central Bank President Christine Lagarde will speak at 1900 GMT.

The speeches of the heads of central banks will play a major role in predicting the course of interest rates, amid hopes that central banks are close to ending the monetary tightening cycle.

Bond yields rose across Europe, with the continent’s benchmark German bond yield rising to 2.54 percent. Interest-sensitive real estate stocks fell 0.1 percent.

On the other hand, growth-sensitive technology stocks fell 0.5 percent, and travel and leisure sector shares fell 0.4 percent.

Losses remained limited, with shares of the energy sector rising 0.6 percent, supported by the rise in crude oil prices. Shares of basic resources companies rose 0.2 percent, supported by the increase in metal prices.

The German DAX index fell 0.1 percent after official data showed that the German economy stagnated in the second quarter compared to the previous quarter, after suffering a contraction in the winter.