European stock markets closed the week in a bullish mood Friday, while the S&P 500 edged to a second straight record as investors weighed US consumer confidence and inflation data.

Equity markets in Paris and Frankfurt cheered a day after the European Central Bank adopted a dovish policy posture even as it raised its growth forecast.

ECB chief Christine Lagarde on Thursday said it would be "too early and premature" to discuss tightening monetary policy, even as officials lifted their annual inflation outlook.

"European markets have ripped higher to close the week in a bullish mood," Fawad Razaqzada, analyst at ThinkMarkets, told AFP.

"With the central bank covering their backs, investors bought every single short-term dip in stocks, causing the Euro Stoxx 50 and the CAC 40 to hit new highs for the year on Friday, with the German DAX also nearing its record high hit last week."

Britain's economic recovery, meanwhile, is gathering pace, with GDP growing by 2.3 percent in April alone as the UK government eased its lockdown, according to official data released Friday.

Back in the US markets, major indices finished a choppy session with modest gains.

A report released Friday from the University of Michigan showed a rise in consumer confidence as the widespread availability of Covid-19 vaccines brought shoppers back to stores.

"Looking ahead, we expect consumers will be more upbeat as the economy continues reopening and employment conditions heal further," Oxford Economics said in a note.

"Current pandemic-related supply constraints will steadily ease, supporting a healthier labor market and easing price pressures as economic dynamics normalize."

Government data released Thursday showed consumer prices at the highest level in 13 years, but the S&P 500 still finished the week at a record as the market seemed to conclude the May data represented a peak for inflation.

Oil prices also rose as the International Energy Agency said crude demand was set to rise above pre-pandemic levels by the end of next year.

Elsewhere, traders are keeping an eye on Friday's start to the G7 summit in Cornwall, in southwest England.

The United States and China clashed in rare talks as President Joe Biden made his international debut, with his administration pressing Beijing on Covid-19, Taiwan and human rights.

Boris Johnson (L) has welcomed Joe Biden to England for the G7 summit in Cornwall, where leaders will discuss a range of issues including China. They have already pledged a billion doses of vaccine to the world's poorest countries Boris Johnson (L) has welcomed Joe Biden to England for the G7 summit in Cornwall, where leaders will discuss a range of issues including China. They have already pledged a billion doses of vaccine to the world's poorest countries Photo: POOL / TOBY MELVILLE

New York - Dow: UP less than 0.1 percent at 34,479.60 (close)

New York - S&P 500: UP 0.2 percent at 4,247.44 (close)

New York - Nasdaq: UP 0.4 percent at 14,069.42 (close)

London - FTSE 100: UP 0.7 percent at 7,134.06 (close)

Frankfurt - DAX 30: UP 0.8 percent at 15,693.27 (close)

Paris - CAC 40: UP 0.8 percent at 6,600.66 (close)

EURO STOXX 50: UP 0.8 percent at 4,126.70 (close)

Tokyo - Nikkei 225: FLAT at 28,948.73 (close)

Hong Kong - Hang Seng Index: UP 0.4 percent at 28,842.13 (close)

Shanghai - Composite: DOWN 0.6 percent at 3,589.75 (close)

Euro/dollar: DOWN at $1.2109 from $1.2170 at 2100 GMT

Pound/dollar: DOWN at $1.4113 from $1.4177

Euro/pound: DOWN at 85.77 pence from 85.85 pence

Dollar/yen: UP at 109.66 yen from 109.33 yen

Brent North Sea crude: UP 0.2 percent at $72.69 per barrel

West Texas Intermediate: UP 0.9 percent at $70.91 per barrel