European stocks traded flat to lower on Friday as investors turned cautious ahead of Fed Chair Jerome Powell's Jackson Hole speech and weighed the impact of the EU's new trade deal with the US.
Under the pact, the EU pledged $750 billion in US energy spending and at least $600 billion in investment, securing a tariff cap of 15% instead of the threatened 30%.
Pharmaceuticals, like other EU exports, will face the 15% levy. Meanwhile, revised data showed Germany's economy contracted more sharply in Q2, dragged by a weaker manufacturing sector after US firms front-loaded purchases earlier in the year to beat tariffs.
Source: Trading Economics
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