European stocks turned lower on Friday after China announced tariffs on U.S. goods, sapping enthusiasm that was being built up for a key speech on U.S. interest rates.
As high as 376.52 earlier in the day, the Stoxx Europe 600 index
fell 0.37% to 372.92.
Germany, an export powerhouse, has felt the pain from the U.S.-China trade war.
Federal Reserve Chairman Jerome Powell is due at 10 a.m. Eastern Time to address the Jackson Hole conference on challenges for monetary policy. After European markets close, Bank of England Governor Mark Carney also will address the venue.
“If Powell’s speech continues to portray the Fed rate cut in July as a mid-cycle adjustment and does not sound worried about growth, there could be room for further fine-tuning of easing expectations but a larger impact could be felt by risk assets – equities, commodities, EM FX etc,” said strategists at Citi.
Separately, in Italy, President Sergio Mattarella has given parties until Tuesday to work out a deal or face new elections.
Peppa Pig owner Entertainment One
soared 33% to 591 pence in London after receiving a 3.3 billion pound, or 560 pence a share, cash offer from Hasbro. The market is pricing in the possibility of a counteroffer.
, which in 2016 tried to buy Entertainment One, climbed 2.1%.
, a maker of industrial wool that is used for insulation, dropped 15.2% in Copenhagen after cutting its sales outlook to 2% to 5% growth at constant currencies, down from a previous forecast of 4% to 8%.