04.09.202607:38:50UTC+00European Stocks Cautious, Set for Weekly Losses

European stocks were little changed on Friday, with both the STOXX 50 and STOXX 600 hovering around the flatline after modest gains in the previous session. Investors remained focused on the monetary policy outlook, with the ECB widely expected to raise interest rates by 25 basis points next week, while persistent tensions in the Middle East continued to dampen risk appetite. Market participants were also awaiting the US jobs report due later in the day for additional guidance on the Federal Reserve’s next policy steps.

Automakers were among the standout performers, led by Volkswagen, which jumped 5.3% after securing a major turnaround agreement that helped prevent an escalation with unions and key shareholder Lower Saxony. Technology names also advanced, with ASML Holding up 1% and Infineon gaining 1.3%. By contrast, chemical and financial stocks underperformed, with UniCredit slipping 1.5%. Over the week, the STOXX 50 lost 1.6%, while the STOXX 600 fell 0.9%.