European Shares Reach Record-High on Financials and US Fiscal Plan

European shares rose to a record-high on Friday on UK-exposed financial stock gains, as well as prospects of increased US fiscal spending.

The pan-European STOXX 600 index rose 0.5% to a record high of 448.55 points. The Europe-only STOXX index and the European blue chip index added about 0.4% each, trading just below multi-year highs.

Bank stocks, in turn, rose 0.6% to a 15-month high. British lenders, such as HSBC, led the gains after a Bank of England policymaker suggested an earlier-than-expected hike in UK lending rates. Gains in UK-exposed stocks further supported the insurance and financial services sectors.

As COVID-19 curbs loosen, travel and leisure stock are also gaining -  set to outpace their regional peers this week with a 4.2% jump. German stocks added 0.4%, as the country planned to offer adolescents COVID-19 vaccine shots from early-June.

Markets additionally look forward to more liquidity, after a report saying that Joe Biden will seek $6 trillion in federal spending for 2022. 

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