European shares edged higher on Friday, with French stocks recovering from the previous session’s sharp selloff as investors shifted their attention to Federal Reserve Chair Kevin Warsh’s speech at the Jackson Hole economic symposium.The pan-European STOXX 600 index rose 0.6% to 655.64 points by 0708 GMT, putting the benchmark on track for a modest weekly gain after declining for two consecutive weeks.French stocks led gains across regional markets, with the CAC 40 climbing about 1% after falling to a one-month low in the previous session. French banks also rebounded, with Societe Generale, BNP Paribas and Credit Agricole gaining between 0.8% and 1%.The banking stocks had suffered heavy losses in the previous session amid concerns about France’s political and fiscal outlook ahead of next spring’s presidential election.According to Reuters, investors are closely watching Warsh’s Jackson Hole address for indications about the Federal Reserve’s outlook on inflation, interest rates and recent volatility in bond markets.The speech is expected to be a key market event as investors assess whether the Fed chair will provide more detailed guidance on monetary policy than his usual preference for limited signalling.All STOXX 600 subsectors moved higher in early trading. Energy stocks, which have been among the weakest performers this week, gained 0.6%.Among individual companies, Austrian construction group Strabag jumped 7.6% after raising its annual outlook, making it one of the strongest performers in the region.Norwegian oil tanker company Frontline advanced 2.6% after reporting its second-quarter results.European markets are likely to remain sensitive to signals from the Federal Reserve as investors assess the outlook for borrowing costs and the broader global economy.(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of The Economic Times.)