European Stocks Close Higher For Third Straight Session After Powell Speech

(RTTNews) - European stocks moved mostly higher for a third straight session on Friday, as investors reacted to Federal Reserve Chair Jerome Powell's Jackson Hole speech seemingly confirming expectations that the central bank is prepared to begin lowering interest rates.

"The time has come for policy to adjust," Powell said at the Jackson Hole Economic Symposium, although he noted the "timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks."

Powell's determination that it is time for the Fed to begin cutting rates comes as his "confidence has grown that inflation is on a sustainable path back to 2 percent."

Fed officials have repeatedly said they need "greater confidence" inflation is moving sustainably toward the central bank's 2 percent target before they would consider cutting rates.

The remarks by Powell come as recent inflation data has increased confidence the Fed will cut interest rates at its next monetary policy meeting in September.

On a light day on the European economic calendar, monthly data from the statistical office INSEE revealed the confidence among French manufacturers strengthened more than expected in August. The manufacturing sentiment index climbed to 99 in August from June's 43-month low of 95.

The pan European STOXX 600 Index climbed 0.5 percent, reaching its best closing level in almost a month.

The U.K.'s FTSE 100 Index also rose by 0.5 percent, while the French CAC 40 Index and the German DAX Index advanced by 0.7 percent and 0.8 percent, respectively.

In corporate news, Nestle recovered from early weakness to close slightly after the Swiss food group announced it is replacing chief executive Mark Schneider with veteran executive Laurent Freixe.

Unilever also moved modestly higher after recalling 137,000 cases of its single-serve Popsicle Jolly Rancher Frozen Confection Pop products over concerns that they may contain milk.

Energy giants BP Plc and Shell also moved to the upside as the price of crude oil moved sharply higher, continuing to recover from a recent sell-off.