Last checked at 
* STOXX 600 up 0.8% this week, third consecutive week of
gains
* Airlines fall as UK expands travel "red list"
* Automobile stocks best weekly gainers, up over 5%
(Updates to market close)
By Ambar Warrick and Sruthi Shankar
June 4 (Reuters) - European stocks ended at a record high on
Friday as weak U.S. payrolls data pointed to lower chances of
early policy tightening, while optimism over a euro zone
economic recovery buoyed most sectors.
The pan-European STOXX 600 index rose 0.4% to a new
closing high of 452.57, having earlier hit an all-time high of
452.71. It added 0.8% for the week.
Technology stocks rose 1.2% and were the best
performers for the day, led by Austrian chipmaker AMS.
Shares of the firm rose 4.4% after it announced the sale of
its North American digital systems business to U.S.-based
Acquity Brands.
Global stocks rose after data showed U.S. non-farm payrolls
rose less than expected in May, leading many to tone down
expectations for hawkish signals from the Federal Reserve.
The Fed has cited inflation and labour market health as two
key factors necessary for it to tighten policy.
The data comes ahead of Fed and European Central Bank policy
meetings next week, where investors will watch for hints on
tapering their large bond purchase programmes.
Both banks are widely expected to leave policy unchanged.
"It is too soon for the ECB to begin even hinting at any
form of monetary tightening, even with economic growth
improving," BCA Research analysts wrote in a note. "While
headline inflation pushed above the central bank's 2% target in
May, core inflation only rose to 0.9%."
Still, recent European data has shown the economy heating up
rapidly after last year's COVID-induced lull.
The dovish outlook on lending rates weighed on government
bond yields, which in turn saw European bank stocks fall
0.9%.
The banking-heavy Spanish benchmark index also fell
0.6%.
European automobile stocks were the best performers
this week, adding more than 5% as positive sales and production
data from major American car makers Ford and General
Motors boosted the sector.
Shares in British Airways-owner IAG, Wizz Air
and easyJet slipped between 0.9% and 3.3% after
Britain removed Portugal from its green list of quarantine-free
travel destinations and added seven countries, including Egypt
and Sri Lanka, to its "red list" which requires hotel quarantine
on return to England.
Ryanair slipped 0.8% even as its chief executive
officer forecast unrestricted movement between Europe and
Britain from July onwards.
French media giant Vivendi, which owns Universal
Music Group, slipped 0.3% after early gains on news billionaire
William Ackman's Pershing Square Tontine was in talks to buy 10%
of the music label for around $4 billion.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Sriraj
Kalluvila, Kirsten Donovan)
