European Stocks Tread Water After Gaining in Best Week Since May

(Bloomberg) -- European stocks marked a subdued start to Monday following last week’s sharp rally, as investors awaited further clues on the US economy from the Federal Reserve’s Jackson Hole economic symposium.

The Stoxx Europe 600 Index was flat by 8:12 a.m. in London, after posting the strongest weekly gain since May. The basic resources and auto sectors outperformed, while technology stocks were the biggest laggards.

Among individual stocks, Plus500 Ltd. gained as it delivered a strong performance in the first half and said it expects annual results to be ahead of expectations. Swedish telecoms-equipment maker Ericsson AB was steady after it reached a $1 billion deal to sell its US call-routing business Iconectiv to a private investment arm of Koch Inc.

Europe’s benchmark index is recovering after sliding since mid-July, as investors await further economic data for clues on the health of the global economy. An improvement in technical indicators also suggests investors are back in risk-on mode.

Focus this week is on the Fed’s economic symposium at Jackson Hole, with Chair Jerome Powell due to speak on Friday.

“Markets remain in wait and see mode about the US economy, but investor sentiment is improving,” said Panmure Liberum strategist Joachim Klement. European business activity data due this week “will give markets more insights on how fast Germany and France are slowing down, creating new macro worries for markets.”

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