European Stocks Tread Water Ahead of Key Meetings

European shares pared gains to trade near the flat line Friday, as investors continued to assess the macroeconomic outlook and the trajectory of monetary policy ahead of key policy meetings next week.

The US Fed, ECB and Bank of England will likely deliver fresh rate hikes on Wednesday and Thursday, but by a smaller margin than the months before.

Meanwhile, the latest US PPI report showed producer prices in the world's largest economy rose more than expected in November, which, along with strong US jobs data and service sector PMI, might suggest US interest rates will be raised for longer.

On the corporate front, Associated British Foods reiterated a November forecast that profit would fall in its 2022-23 financial year, while Manchester United raised its 2023 total revenue guidance on the back of strong matchday revenue and homebuilder Berkeley Group Holdings retained its annual profit outlook.

For the week, European stocks are still on track for their first weekly loss in two months.