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STOXX 600 up 0.3%

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Ambu slumps after Q3 results

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French CPI at 0.4%

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Euro zone CPI at 0900 GMT

(Updated at 0845 GMT)

By Pranav Kashyap

Aug 30 (Reuters) - European shares rose to an all-time

high on Friday, boosted by real-estate stocks, with the

benchmark set to gain for a fourth straight week, although

caution prevailed ahead of a key inflation reading for the Euro

zone.

The pan-European STOXX 600 index was up 0.3% at

526.46 points by 0845 GMT, beating its previous record of 525.59

hit in June.

The benchmark was on track to gain 1.6% for the week,

extending its rally into the fourth week, which would be its

longest in more than five months. The STOXX 600 was also set to

rise for a second straight month, a trend last seen nearly six

months ago.

Rate sensitive real-estate stocks' 1.5% rise

boosted the index on the day, with the markets expecting a 25

basis point rate cut when the European Central Bank meets in

less than two weeks.

Shares had slipped earlier in the month on fears of a

recession in the United States, which have since faded.

The STOXX 600 has gained in 16 out of the last 20 sessions

and risen nearly 10% from a six-month low on Aug. 5, marking a

robust recovery.

Investors now expect at least a 25-basis-point rate cut in

the U.S. next month.

Adding to the upbeat mood were comments from ECB board

member Isabel Schnabel, who said that inflation will fall back

to the 2% target by the end of 2025.

All eyes are now on Euro zone and Italian consumer prices

and EU unemployment data that is set to drop at 0900 GMT.

Also on investors' radar will be remarks from the European

Central Bank's board member Kerstin af Jochnick at 1400 GMT.

"Investors are looking for sign for European economic growth

to stabilize and turn around and did get a couple of prints

along that direction," Arun Sai, senior multi-asset strategist

at Pictet Asset Management, said.

"We shouldn't read too much into it. The market has

gotten ahead of itself in terms of how front-loaded these cuts

would come and we don't yet expect consecutive cuts every

meeting."

The French benchmark CAC 40 gained 0.4% on Friday

after data showed consumer spending grew in August.

Spain's IBEX 35 gained 0.6% after retail sales data

showed an uptick of 1% in July.

Germany's DAX was up 0.1% data showed unemployment

rose less than expected.

Tech stocks weighed on the European index, falling

0.5% after a near 1% jump in the previous session.

Danish medical equipment maker Ambu slumped 13.5%

after reporting their third-quarter results.

In the U.S., personal consumption expenditure data is due

later in the day.

(Reporting by Pranav Kashyap in Bengaluru; Editing by Savio

D'Souza and Mrigank Dhaniwala)