STOXX set for weekly rise
Miners jump, boosting UKs FTSE 100
Banks under pressure as yields fall Adds comment, updates prices
June 11 Reuters European stocks scaled a record high on Friday, buoyed by hopes that major central banks will remain accommodative despite signs of rising inflation, while a rally in miners boosted UK shares.
The panEuropean STOXX 600 index rose 0.3 in its sixth straight session of gains and was on course to end the week higher.
Miners jumped 1.2, lifting UKs commodityheavy FTSE 100 by 0.6 after data showed Britains economic output in April was a record 27.6 larger than a year before.
Travel and leisure stocks bounced from the previous sessions drop. Spanish hotel chain Melia rose 0.7 after its chief executive forecast a return to profitability in June after 15 months in the red.
Reopening optimism has pushed Europes stock markets to record highs, with investors rotating into cyclical sectors such as commodities, industrials and banks that tend to benefit from an economic recovery.
The European Central Bank raised its growth and inflation projections for the euro zone on Thursday but pledged a steady flow of stimulus over the summer, easing investor concerns about an early dialling back of the banks support.
Price pressures remain subdued in Europe. Even after its upwards revisions to the inflation forecasts, the ECB does not expect inflation to reach 2 within its projection horizon, analysts at BCA Research wrote in a note.