LONDON — European markets rose to a fresh record high Friday, tracking gains in China on news of a stimulus blitz, while investors also assessed inflation data.

The pan-European Stoxx 600 traded 0.4% higher at 527.85 points at 1:25 p.m. London time, notching an all-time intraday high, according to LSEG data.

Chemicals stocks led the gains, up around 2.4%, while autos stocks rose nearly 2%.

It comes after Chinese markets clocked their best week in almost 16 years, with the mainland’s CSI 300 rallying 15.7% this week. The last time the index saw a bigger weekly gain was the week ending Nov. 14, 2008.

China launched a large-scale stimulus package this week in a bid to boost growth and restore confidence in the world’s second-largest economy.

The People’s Bank of China said it is cutting its seven-day reverse repo rate to 1.5%, the second reduction in around three months, and slashed the reserve requirement ratio of financial institutions by 0.5 percentage points.

In Europe, France and Spain both published preliminary data Friday showing a sharp drop in harmonized inflation. The September readings fueled expectations that the headline inflation rate of the euro zone as a whole will reflect a steep drop to below the ECB’s 2% target.

Statistics agency Eurostat is scheduled to publish flash euro zone inflation data for September on Tuesday.

Looking at individual stock moves, shares of Italian fashion group Moncler surged nearly 10%, hitting the top of the European benchmark. It comes after French luxury giant LVMH struck a deal to invest in Double R, an investment vehicle controlled by Moncler, Reuters reported. Shares of LVMH rose 2% on the news.

Meanwhile, shares of Spanish bank Banco Sabadell fell 5%. The lender is the subject of a hostile takeover bid from larger Spanish bank, BBVA.

Speaking to CNBC’s Charlotte Reed on Thursday, Banco Sabadell CEO César González-Bueno said BBVA’s proposal is “very volatile” and offers a “completely insufficient” price. Earlier in the week, BBVA CEO Onur Genç told CNBC that the takeover was “moving according to plan.”

European stocks had closed 1.25% higher on Thursday, tracking gains in Asia-Pacific markets, which were buoyed by China’s announcement of stimulus measures earlier in the week.

On Wall Street, U.S. stock futures were little changed as investors awaited the release of August’s personal consumption expenditures price index. The PCE is the Federal Reserve’s preferred inflation gauge.

Economists are expecting headline PCE to have risen 2.3% on an annual basis and 0.1% from the previous month.

— CNBC’s Lim Hui Jie contributed to this report.