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 hints on the European Central Bank's interest rate hike plans.

The pan-European STOXX 600 index gained 0.4% by 0718 GMT, turning slightly positive for the week.

Richemont jumped 5.5% 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.

Data showed Spanish national consumer prices rose 4.1% in the 12 months through April, while French inflation rose 6.9% - both in-line with economists' estimates.

Troubled Swedish real estate group SBB, whose shares have plunged recently on debt concerns, gained 2.9% following a sale of most of its shares in construction company JM for 2.8 billion Swedish crowns ($275.8 million). JM shares rose 2.6%.

French bank Societe Generale gained 0.3% after it posted better-than-expected quarterly earnings. (Reporting by Sruthi Shankar in Bengaluru; Editing by Nivedita Bhattacharjee)