European markets hold steady with all eyes on the Fed

European stocks were little changed Thursday as markets awaited key signals from the U.S. Federal Reserve’s Jackson Hole symposium.

“The symposium arrives at a complicated moment for global markets,” said Daniela Hathorn, senior market analyst at Capital.com. She warned that while investors expect a dovish message, they could be in for a “sharp hawkish surprise” due to reaccelerating inflation and political pressures.

In economic data, a survey showed euro zone business activity expanded at its fastest pace in 15 months, though it provided little lift to the market.

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Defense stocks rose 1.4%, rebounding from earlier pressure on hopes for a Ukraine-Russia peace deal. Discussions around post-war security for Ukraine continued, though Germany expressed unease about sending peacekeeping forces.

In notable movers, British retailer WH Smith plunged 36% after cutting its profit outlook due to an accounting error. Dutch insurer Aegon gained 6.8% after doubling its share buyback program. German ticketing firm CTS Eventim dropped 18.8% on disappointing earnings, while Norway’s Aker BP climbed 3.1% on a significant oil discovery.