Warsh Speech Heralds New ECB Rate Expectations

European shares have seen an uptick on Friday, driven by French stocks recovering from their losses in the previous session.

The pan-European STOXX 600 index rose by 0.5% to 655.33 points at 0708 GMT, marking a modest weekly increase after two consecutive declines.

French lenders such as Societe Generale, BNP Paribas, and Credit Agricole have seen gains of between 0.8% and 1.4%, while luxury stocks firmed up by 2.3%.

The focus now shifts to Federal Reserve Chair Kevin Warsh's speech at Jackson Hole, where investors are eager to see if he departs from his preference for limited policy signalling and provides fresh guidance on inflation, interest rates, and recent bond market volatility.