European shares were at record highs on Friday after reports said U.S. President Joe Biden will seek $6trillion in federal spending plans for 2022. Biden is expected to unveil his first full budget later in the day.

Investors also wait for an update on the personal-consumption expenditures price index, the Federal Reserve’s preferred gauge of inflation, amid concerns that a higher-than-expected figure could force the U.S. Federal Reserve to tighten its monetary policy.

The pan-European STOXX 600 index rose 0.4 percent to 448.29 and was set for modest weekly gains.

The German DAX gained half a percent, France’s CAC 40 index rose 0.4 percent and the U.K.’s FTSE 100 was up 0.2 percent.

German industrial conglomerate Siemens rallied 3.5 percent to lead gains on hopes for economic recovery.

Banking giant HSBC rallied 2.2 percent in London and Standard Chartered advanced 1.7 percent.

TUI AG edged down slightly. The travel agency firm said that it has reached an agreement to dispose its 49 percent stake in RIU Hotels S.A. Joint Venture to Saranja S.L., an entity of the RIU-Group owned by Carmen and Luis Riu.

In economic releases, The European Commission’s economic sentiment index strongly to 114.5 in May, up from 110.5 in April, and above expectations for a score of 112.1.

France’s consumer price inflation accelerated to 1.4 percent in May from 1.2 percent in April, flash data from statistical office Insee revealed.

The rate came in line with economists’ expectations and a similar higher rate was last reported in February 2020.

The French economy contracted 0.1 percent in the first quarter of 2021, revised official data showed, marking a slip into recession as construction had fared worse than previously estimated.

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