European shares close at record high; luxury giants rally on China stimulus

LONDON — European markets closed astatine a caller grounds precocious Friday, arsenic stocks tracked higher connected news of China's stimulus blitz and investors assessed caller ostentation data.

The pan-European Stoxx 600 ended 0.52% higher to deed an all-time precocious of 528.33 points, having notched a grounds intraday precocious earlier successful nan session, according to LSEG data.

Chemicals stocks led nan gains, adding 2.75%, while car names roseate 2.23%.

It comes aft Chinese markets clocked their champion week successful almost 16 years, pinch nan mainland's CSI 300 rallying 15.7% this week. The past clip nan scale saw a bigger play summation was nan week ended Nov. 14, 2008.

China launched a large-scale stimulus package this week successful a bid to boost maturation and reconstruct assurance successful nan world's second-largest economy.

The People's Bank of China said it is cutting its seven-day reverse repo rate to 1.5%, nan 2nd simplification successful astir 3 months, and slashed the reserve request ratio of financial institutions by 0.5 percent point.

In Europe, France and Spain some published preliminary information Friday showing a sharp driblet successful harmonized inflation. The September readings fueled expectations that nan header ostentation complaint of nan euro area arsenic a full will bespeak a steep driblet to beneath nan ECB's 2% target.

Statistics agency Eurostat is scheduled to people flash euro area ostentation information for September connected Tuesday.

Looking astatine individual banal moves, shares of Italian manner group Moncler surged almost 11%, hitting nan apical of nan European benchmark. It comes aft French luxury elephantine LVMH struck a woody to put successful Double R, an finance conveyance controlled by Moncler, Reuters reported. Shares of LVMH added 3.7% connected nan news.

Meanwhile, shares of Spanish slope Banco Sabadell closed 4.8% lower. The lender is nan taxable of a dispute takeover bid from larger Spanish bank, BBVA.

Speaking to CNBC's Charlotte Reed connected Thursday, Banco Sabadell CEO César González-Bueno said BBVA's connection is "very volatile" and offers a "completely insufficient" price. Earlier successful nan week, BBVA CEO Onur Genç told CNBC that nan takeover was "moving according to plan."

On Wall Street, U.S. stocks were mixed arsenic highly anticipated data showed ostentation moved person to nan Federal Reserve's target successful August.

The individual depletion expenditures value index, nan Fed's preferred ostentation gauge, roseate 0.1% successful August, putting nan 12-month ostentation complaint astatine 2.2%, down from 2.5% successful July.

Economists surveyed by Dow Jones had been expecting all-items PCE to emergence 0.1% connected nan period and 2.3% from a twelvemonth ago.

— CNBC's Lim Hui Jie contributed to this report.