European markets take a hop as investors seize on a dip in inflation

US inflation numbers this week suggested rising price growth may be peaking, which would ease pressure on the Federal Reserve to begin tapering its asset purchases

European stocks hit new highs on Friday and were on course for a record-breaking run, capping another strong week as investors seize on a dip in US inflation and more forecast-beating corporate earnings.

World stocks mostly rose Friday ahead of more economic releases that could hint at how the delta variant is affecting growth.

France’s CAC 40 climbed 0.2% to 6,895.50, while the DAX in Germany added 0.3% to 15,985.45. Britain’s FTSE 100 picked up 0.4% to 7,223.49 in early trading.

It was a different story in Asia, where worries about a regulatory crackdown in China and a surge in the COVID-19 Delta variant has sapped confidence.

US inflation numbers this week suggested rising price growth may be peaking, which would ease pressure on the Federal Reserve to begin tapering its asset purchases.

Pandemic-era stimulus has been behind much of the surge in stock prices the past year, but a stronger than expected economic rebound in much of the world and massive corporate earnings has given the rally new legs in recent weeks.

By 0810 GMT on Friday, the MSCI world equity index, which tracks shares in 50 countries, was just below an all-time record high.

The broader Euro STOXX 600 was 0.15% higher - on Thursday it equalled its longest-ever longest winning streak. Friday would see the index extending gains for a record tenth consecutive session.