Morning MoneyBeat Europe: Central Bankers Remain Key

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European stocks were largely unchanged Friday as the momentum behind the hefty rally earlier this week slowed.

Investors will continue to digest comments from the key central bankers, ahead of potential moves in December by both the Federal Reserve and the European Central Bank.

ECB President Mario Draghi used a key speech in Frankfurt Friday to underline the case for more accommodative policy, while later the Fed's James Bullard is slated to speak.

Late Thursday, Atlanta Fed chief Dennis Lockhart reiterated that financial-market volatility has settled down enough for him to feel comfortable with lifting short-term rates soon, but said he still sees persistently low inflation as a concern.

"The removal of the uncertainty and the fact that the Fed is confident about the economy is...supportive of markets at the moment," said David Page at Axa Investment Managers.

However, Mr. Page said there could be more uncertainty and volatility in financial markets at the start of next year as investor focus shifts to the pace of interest rate increases, which markets currently expect to be very gradual.

The 'how far and how fast' is much more important than the 'when,'" Mr. Page said.

U.S. stock indexes steadied Thursday, following the biggest rally in almost a month after notes from the Fed showed that it is likely on track to raise interest rates in December.

In Asia, shares in Australia are headed for their best week in over a month on Friday as the resources sector led the index higher as heavy losses in oil prices eased.

Watch for: Watch for: ECB accounts of monetary policy discussions; EU current accounts; U.K. retail sales, mortgage lending, CBI industrial trends; U.S. weekly jobless claims; Philadelphia Fed survey; Fed's Lockhart speech; updates from Best Buy, Gap.

Market Snapshot: FTSE 100 down 0.04%, CAC 40 down 0.28% and DAX up 0.02%. Nikkei closed Friday up 0.10%. Brent crude up 0.05% at $44.20. Gold down 0.08% at $1081.60. EUR/USD at $1.0676. Ten-year Treasury yield flat at 2.247%, Bund yield lower at 0.473%, Gilt yield higher at 1.888%.

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