European shares fall as attention turns to Jackson Hole

(Reuters) – European shares opened lower on Friday, as investors turned cautious ahead of speeches from major central bank heads at the Jackson Hole symposium in the United States, while rising bond yields continued to pressure stocks.

By 0711 GMT, the pan-European STOXX 600 fell 0.1%, though it looked set for its first weekly gain in four.

U.S. Federal Reserve Chair Jerome Powell is scheduled to speak at 1405 GMT, while European Central Bank President Christine Lagarde will be taking the stage at 1700 GMT.

Speeches from the central bankers will be key in assessing the outlook for interest rates amid hopes that central banks are near the end of their tightening cycle.

Bond yields across Europe perked up, with German bund yields, considered as Europe’s benchmark, rising to 2.54%. Rate-sensitive real estate stocks fell 0.1%.

On the flip side, growth-sensitive technology stocks fell 0.5%, while the travel and leisure sector shed 0.4%.

Limiting losses, energy stocks rose 0.6% as crude prices advanced, while basic resources added 0.2% on higher metal prices. [MET/L] [O/R]

Germany’s DAX lost 0.1% after official data showed the German economy stagnated in the second quarter compared with the previous three months, following a winter recession.

(Reporting by Shashwat Chauhan in Bengaluru; Editing by Eileen Soreng)