This is CNBC's live blog covering European markets. See the latest updates below.

European stocks closed higher Friday as investors digested fresh euro zone inflation data and its implications for next week's European Central Bank rate decision.

The regional Stoxx 600 index was provisionally 0.28% higher as markets closed. Sectors were mostly in positive territory, with utilities adding 1.04% while tech lost 1.48%. The Stoxx 600 benchmark finished the month of May 2.3% higher, its biggest gain since March, Refinitiv data showed.

British retailer JD Sports trailed near the bottom of the pan-European benchmark, dropping as much as 12% before paring losses slightly, after it reported a fall in first-quarter U.K. sales.

Euro zone inflation rose to 2.6% in May, slightly higher than the 2.5% analysts had predicted, fresh data from statistics agency Eurostat said Friday. The uptick comes as the European Central Bank is widely expected to cut interest rates at its June 6 meeting, the first reduction since 2019.

Fresh data out of Italy also showed the economy grew 0.3% in the first quarter, with a similar growth rate expected for the rest of the year.

Elsewhere, U.S. stocks ticked lower Friday as investors assessed the latest set of corporate earnings and looked ahead to a key inflation report. In Asia Pacific, markets rose on the back of fresh data from major economies across the region.

European markets close higher on last trading day of the month

European markets closed higher on the last trading day of the month.

The pan-European Stoxx 600 was provisionally up 0.28% as markets closed on Friday. Most sectors were in the green, with utilities stocks leading gains and finishing the day 1.04% higher. Tech stocks fell 1.48%.

Major European bourses were mixed, with the U.K.'s FTSE 100 finishing the day up 0.57% and France's CAC 40 closing 0.03% higher. Meanwhile, Germany's DAX ended the day 0.07% lower.

— Sophie Kiderlin

Europe in a better place on AI now — but still behind U.S., China, JPMorgan says

Matt Gehl, head of EMEA technology investment banking at JPMorgan, outlines how investors should be thinking about playing the artificial intelligence story right now.

Flutter shares fall 4.5% on listing relocation

Shares of Flutter Entertainment fell 4.5% after the betting company transferred its listing on the main market of the London Stock Exchange from "premium" to "standard" as part of preparations to relocate its primary listing to New York.

The move is one of a number of recent blows to the London stock market as companies are seen moving to the U.S. market.

— Karen Gilchrist

Flash French inflation rises in first quarter

French consumer prices rose by a higher-than-expected 2.7% in May, preliminary data from the National Institute of Statistics and Economic Studies (Insee) showed Friday.

Higher energy costs pushed up inflation from 2.4% in April and beyond the average EU-harmonized rate of 2.5% forecast by a Reuters poll of economists.

The Insee also confirmed France's economy grew by 0.2% in the first quarter, in line with expectations, according to Reuters.

— Karen Gilchrist

Euro zone inflation rises to 2.6% in May

Inflation in the euro zone rose to 2.6% in May, statistics agency Eurostat said Friday.

Economists polled by Reuters had forecast a 0.1 percentage point increase from April's headline figure of 2.4%.

Core inflation, excluding the volatile effects of energy, food, alcohol and tobacco, increased to 2.9% from 2.7% in April. A Reuters poll of economists had projected a flat reading.

The data print comes with the European Central Bank widely expected to cut interest rates at its June 6 meeting, the first reduction since 2019. The ECB began its latest hiking cycle in July 2022, hauling rates out of negative territory to 4% at present.

— Jenni Reid

Italy's economy grew 0.3% in the first quarter

Italy's economy grew in line with expectations in the first quarter, expanding 0.3%, fresh data from the national statistics bureau ISTAT showed Friday.

On an annual basis, gross domestic product for the January to March period was up to 0.7% from the 0.6% previously estimated.

— Karen Gilchrist

JD Sports shares drop 12.4%

Shares of British retailer JD Sports fell to the bottom of the Stoxx 600, down 12.4%, after the company reported a 6.4% fall in like-for-like first-quarter U.K. sales on Friday.

CEO Regis Schultz said the downturn was on the back of "very strong" results the previous year.

The group's overall like-for-like sales were 0.7% lower for the period.

— Karen Gilchrist

Europe stocks head for lower open

European stock markets are set to open lower on Friday, reversing gains from the previous session, according to IG data.

The U.K.'s FTSE 100 was last seen down 2 points at 8,230, Germany's DAX 48 points lower at 18,463, and France's CAC down 9 points at 7,967. Italy's MIB was seen slipping 13 points to 34,486.

— Karen Gilchrist

CNBC Pro: 'Many happy returns': Barclays names 2 global stocks it says has over 100% upside to play right now

Investment bank Barclays is bullish on European stocks thanks in large part to "solid earnings beats and [an] uptick in EPS [earnings per share revisions]" in the first quarter.

"Overall, margins are resilient, capital returns are strong, firms are optimistic and EPS revisions have picked up. Cyclicals are seeing more upgrades, but defensives have outperformed in the recent rally," the analysts wrote, naming two stocks with over 100% upside potential to play right now.

CNBC Pro subscribers can read more here.

— Amala Balakrishner

CNBC Pro: Goldman Sachs names top global stocks to play the coming power boom in AI and other areas

The artificial intelligence boom is fueling demand for power, with many tech companies rapidly developing infrastructure as they compete for dominance.

Power needs are only set to rise in the coming years, as large language models require a lot of data center capacity.

But the need for power goes beyond data centers and other infrastructure, according to Goldman.

Against that backdrop, the bank introduced what it called its power and electricity basket of stocks, comprising 50 stocks across China, South Korea, Taiwan, India and Australia.

CNBC Pro subscribers can read more here.

— Weizhen Tan