Europe close: Stocks end the week on a quiet note

European equity markets were little changed on Friday, struggling for direction as oil prices fell back and investors awaited a speech from Federal Reserve Chair Janet Yellen.

The benchmark Stoxx Europe 600 index was up by 0.21% or 0.73 points to 349.64 by the end of trading, while Germany’s DAX edged higher by 0.13% or 13.60 points to end at 10,286.31 and France’s CAC 40 advanced 0.05% or 2.10 points to 4,514.74.

US data were again a bit of a mixed bag, but did appear to point to a more solid outlook for economic growth in the second quarter of 2016.

The rate of growth for US gross domestic product in the first quarter of the year was revised higher from an annualised pace of 0.5% to 0.8%, but the preliminary estimate of a 1.9% expansion in household consumption was left unchanged, contrary to some analysts´ expectations for a larger increase.

On a more positive note, the final reading on the University of Michigan´s consumer confidence gauge for May saw a sub-index tracking current conditions set a fresh post-recession high alongside expectations bouncing back sharply from their recent declines, Barclays´s Jesse Hurwitz said in a research note sent to clients.

"The morning’s final May release comes as a welcome sign for the consumer outlook. We expect that better readings on sentiment and a healthy rebound in April consumption growth will solidify expectations for a bounce-back in Q2 real GDP growth," Hurwitz said.

At the same time, oil prices were on the back foot after Brent crude breached the $50 a barrel mark on Thursday for the first time since November. West Texas Intermediate was 0.41% lower at $49.28 a barrel and Brent crude was down 0.73% at $49.23.

“Markets here, and in the US and Asia, have lost momentum after big gains midweek,” said Lee Wild, head of equity strategy at stockbroker Interactive Investor.

“A drop in oil prices back below $50 and caution ahead of Fed chair Janet Yellen's speech tonight will make it difficult for them to make much headway, especially ahead of a long weekend in the UK. Revisions to US first-quarter GDP later could also fuel another dollar rally. A Fed rates meeting next month, the EU referendum and weak corporate earnings make this a tricky time for investors, and many are sitting on cash.”

Market participants were also watching out for Yellen’s speech at Harvard which was scheduled for after the close of trading in London, as they looked for further clues on the timing of the next Fed rate hike, although there was a chance that she might not address monetary policy at all on this ocassion.

Societe Generale said: “Little emphasis on the monetary policy outlook is expected at this event. The appearance to look forward to will be the Chair’s speech in Philadelphia on 6 June, the Monday following the May employment report and a day before entering the blackout period for the upcoming FOMC meeting.

In corporate news, Swiss pharmaceutical company Roche rallied after announcing positive results from its trial of drug Gazyva.

Spain’s Banco Popular was under the cosh again a day after it announced a rights issue.

AstraZeneca reversed course in late trading to end higher after the phamaceuticals giant announced positive results for its Faslodex drug for the treatment of metastatic breast cancer, but also said US regulators will not currently approve its new drug for high potassium levels because of a manufacturing issue.

Investors were also digesting headlines from the Group of Seven meeting in Japan, where political leaders warned of rising risks to the global economy.