Richemont shares hit record high
STOXX 600 set to end week mostly flat
SBB raises 276 mln from JM stake sale

May 12 Reuters European shares rose on Friday after upbeat results from Richemont underscored strength in the luxury sector, while investors assessed inflation data from France and Spain for signals on the European Central Bank39;s interest rate hike plans.

The panEuropean STOXX 600 index gained 0.6, turning slightly positive for the week.

Richemont jumped 6.5 to a record high as the luxury goods group beat expectations after strong demand from Chinese consumers for jewellery and watches boosted net profit and sales in the 12 months through March.

Shares of other luxury firms such as Kering and LVMH gained more than 1 each, while Europe39;s personal household goods gained 1.3.

Luxury is doing very well because the Chinese story is more about domestic recovery, not so much manufacturing. What we39;re getting out of China and the way it affects the European market is very uneven, said Anthi Tsouvali, a multiasset strategist at State Street Global Markets.

Within Europe, we39;re more positive on defensive sectors versus cyclicals.

Despite some upbeat earnings, the STOXX 600 has traded in a tight range in the recent weeks as investors remain concerned about the possibility of a U.S. recession and further interest rate hikes from the ECB.

Data showed Spanish national consumer prices rose 4.1 in the 12 months through April, while French inflation rose 6.9…