French equities hit another record peak on Wednesday amid broad European gains as traders awaited US inflation data set to play a key role in the Federal Reserve's next move on US interest rates.

The benchmark Paris CAC 40 index jumped as high as 7,431.87 points to extend this week's record-breaking run.

Frankfurt and London stocks also continued to climb, while the dollar wavered.

"Stocks in Europe (are) keeping the bullish sentiment alive ahead of key inflation data from the US," said ActivTrades analyst Pierre Veyret.

"Traders remain remarkably positive despite recession worries, inflation fears and the prospect of dented corporate profits," he added, noting strong share-price gains for energy, utilities, real estate and luxury goods firms.

While a healthy US jobs report on Friday soothed worries about a possible recession, it also reinforced expectations the central bank would press ahead with monetary tightening as it tries to cool the economy and bring inflation down.

The discussion comes as fears about the financial sector – following turmoil last month that saw three US lenders go under – have been tempered in recent weeks.

On Tuesday, Neel Kashkari at the Minneapolis Fed said: "I'm not ready to declare all clear, but there are hopeful signs that these risks are now better understood and calm is being restored."

Analysts said the next few days could play a key role in market sentiment as Wednesday's consumer prices report will be followed by data on wholesale prices on Thursday, then the start of the corporate reporting season on Friday.

The next few days could play a key role in market sentiment as Wednesday's consumer prices report will be followed by data on wholesale prices on Thursday, then the start of the corporate reporting season on Friday

There appears to be a split within the Fed over the best way forward for its rate hike drive.

Chicago Fed boss Austan Goolsbee urged "prudence and patience", saying officials should weigh the effects on the economy of a year-long campaign of tightening as well as the banking upheaval.

"Given how uncertainty abounds about where these financial headwinds are going, I think we need to be cautious," he said in prepared remarks at an event hosted by the Economic Club of Chicago.

"We should gather further data and be careful about raising rates too aggressively until we see how much work the headwinds are doing for us in getting down inflation."

However, his New York counterpart John Williams said another increase before pausing was a "reasonable starting place", adding that incoming data should be noted in the decision-making.

There is also a growing hope among traders that the Fed will stop lifting rates soon and could even begin cutting before the end of the year.