Europe close: Stocks brush-off inflation readings helped by reports on US stimulus

European shares pushed further into record territory on Friday with investors apparently brushing off data in the US showing quickening inflation.

"With May all but over apart from next Monday, likely to be a dull day indeed, the month is ending on a positive note, as strong momentum continues to carry markets higher while investors learn to acclimatise to an environment of higher inflation," said IG chief market analyst Chris Beauchamp.

Also buoying risk appetite were reports that US President Joe Biden is preparing a massive stimulus as part of his Budget package.

The pan-European Stoxx 600 index rose 0.57% to 448.98, passing the 447.86 hit on Thursday.

In parallel, Germany's Dax climbed 0.74% to 15,519.98 while the French Cac-40 was 0.75% higher to 6,484.11.

Biden will propose a $6trn budget on Friday that would take the US to its highest sustained levels of federal spending since World War II as he looks to fund a sweeping economic agenda that includes large new investments in education, transportation and fighting climate change, the New York Times reported.

Documents obtained by newspaper show the budget request, the first of Biden’s presidency, calls for total spending to rise to $8.2trn by 2031, with deficits running above $1.3trn throughout the next decade.

Shares rose on hopes of more economic stimulus, after a report said US President Joe Biden would seek $6trn in federal spending for 2022.

In equity news, shares in pharma giant AstraZeneca were down despite the company announcing its lung cancer treatment had received EU approval.

Spanish bank Sabadell fell more than 6% even after it outlined plans for more cost cuts to improve profitability.