European stocks rise as French shares rebound

European stocks steadied higher on Friday, with the STOXX 600 edging up about 0.5% as markets digested the latest economic signals alongside corporate earnings and central bank commentary. The CAC 40 rebounded from a recent slide, rising around 1% as French banks led gains after a rout, and EssilorLuxottica climbed on a share buyback plan, with luxury names also supporting the market. Data showed France’s second-quarter GDP was flat, underscoring weak momentum and prompting calls for further consolidation in 2026 to keep the deficit in check, while Fitch’s rating review looms a year after a downgrade to A+. Investors weighed the implications of a hawkish Jackson Hole speech by Fed Chair Warsh, which emphasized inflation a return to 2% but offered limited guidance on policy paths. In tandem, auto manufacturers such as Volkswagen, Mercedes-Benz and BMW boosted sentiment amid tariff and growth concerns, and solid Chinese data provided a tailwind for luxury brands across Europe. Overall, traders balanced domestically focused signals with external risks, including ECB rate expectations and the broader global inflation and growth backdrop.