LONDON: European stock markets rose on Tuesday but Wall Street retreated from record highs as fresh US data fuelled concerns over inflation.

The cryptocurrency market, however, reached a new summit as bitcoin surged to a historic high of $68,513.

While Europe's major stock exchanges were higher in mid-afternoon trading, investors on Wall Street booked profits in early deals after the record highs the previous day.

US official data showed Tuesday that wholesale prices remained high in October and showed signs of accelerating again, as the world's largest economy battles a wave of inflation.

The producer price index signalled building price pressures in the pipeline that could spill over to consumers.

The Labor Department will release consumer price data on Wednesday, which economists also expect to accelerate.

"Because of rising energy costs and supply chain constraints, inflation is likely to have surged," said AvaTrade analyst Naeem Aslam.

Traders were in buoyant mood after the US Federal Reserve last week unveiled its plan for withdrawing its vast financial support, but said it would move cautiously in raising interest rates.

Analysts said other central banks had been less keen to tighten policy than investors had expected.

Still, the Fed had warned Monday that the rally across markets could quickly reverse if there was another Covid surge or the recovery stalls, and also raised concerns about the possible impact of China's property crisis.

All three main indexes in New York had hit record highs for the second day in a row on Monday on news that US lawmakers had passed President Joe Biden's $1.2-trillion infrastructure overhaul, and as the country reopened to vaccinated visitors from more than 30 countries.

Bitcoin meanwhile scaled new historic heights as the combined value of all cryptocurrencies topped $3 trillion, according to data provider CoinGecko.

"The entire market appears to be gaining momentum today with other majors like Cardano and Litecoin up over 10 percent," said XTB analyst Walid Koudmani.

"After a brief period of consolidation, the rally was supported by some upbeat fundamental news like Mastercard launching crypto-linked payments cards in Asia which... continues to further the narrative that cryptocurrencies are becoming more widely accepted which in turn furthers mass adoption."