Europe open: Shares hit record high on US spending hopes

The pan-European STOXX 600 index rose 0.31% to 448.12 points in early trade, passing the 447.86 hit on Thursday.

“Further signs that the US economy is beginning to run hot prompted another switch into value stocks, at the expense of growth,” said interactive investor head of markets Richard Hunter.

“In the meantime, inflationary nerves will be tested once more as the Commerce Department releases the PCE, or Personal Consumption Expenditures, index later today. The measure tends to be one which the Federal reserve monitors closely and is more influential in deciding Fed policy than the more obvious Consumer Price Index.”

Hunter said inflationary concerns persisted as economic data “continues to point towards excess demand as growth kicks in, with supply struggling to keep pace”.

Shares rose on hopes of more liquidity, after a report said US President Joe Biden would seek $6trn in federal spending for 2022. Biden is expected to unveil his first full budget later in the day.

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