The pan-European STOXX 600 index rose 0.5% to a closing high of 460.57 points
Savova, however, noted that mentions of inflation by STOXX 600 companies have risen by more than 400% over the past year, leaving them at an all-time high in absolute terms
Hong Kong sank more than four percent to match Monday's drop with investors running for cover after Beijing's latest move to tighten control over the economy
The pan-European STOXX 600 index rallied 1.1pc to hit a record high of 461.75, and marked a 1.5pc weekly rise - its biggest weekly gain since early May.