By Julien Ponthus and Helen Reid
LONDON (Reuters) - European shares were little changed on Friday morning as investor digested the latest round of U.S.-China trade talks, which ended without a breakthrough but left open the hope of eventual progress.
Analysts said investors were also likely to exercise caution ahead of a speech later on Friday by Jerome Powell, in which the Federal Reserve chairman is expected to give fresh clues on the outlook for U.S. monetary policy.
"Markets are not very directional today," wrote ActivTrades analyst Pierre Veyret, noting that "the U.S. and China have disappointed investors ...so traders are now patiently waiting for Jerome Powell".
At 0848 GMT, the pan-European STOXX 600 (STOXX) was up 0.1 percent, in a thinner than usual market with trading at 12.7 percent of average daily volumes over the last 90 days.
Miners, banks and cars led gainers.
Autos (SXAP) rose 0.3 percent, after being among the worst-performing sectors earlier in the week since a surprise profit warning from tire maker Continental, which added to ongoing tariff concerns.
Basic materials (SXPP) rose 0.6 percent as London copper prices rose. Antofagasta (L:ANTO) was a top gainer, rising 2.2 percent.
Irish construction company Kingspan (I:KSP) was the top performers, with its shares up 7.7 percent and on track for their best day in over a year after first half results.
Shares in Danish medical equipment maker (CO:AMBUb) recovered from a 12 percent fall on Thursday following a disappointing trading update and were up 7 percent.
Britain's Shire (L:SHP) added 2.3 percent and was the top UK performer after the U.S. Food and Drug Administration approved a drug to treat patients suffering from hereditary angioedema, a hereditary disease that causes swelling in different parts of the body.
Among smaller companies, Swiss semiconductor maker U-Blox sank 15 percent after it cut its guidance for the year, with traders flagging its China business as particularly disappointing.