Investing.com - European stock markets edged higher Friday, with investors digesting more corporate earnings as well as regional inflation data after the European Central Bank’s latest easing of monetary policy.
At 07:10 ET (12:10 GMT), the DAX index in Germany climbed 0.3%, the CAC 40 in France gained 0.5% and the FTSE 100 in the UK rose 0.4%.
ECB boosts sentiment
Sentiment has been boosted by the decision of the European Central Bank to cut interest rates on Thursday, as widely expected, and to also keep the door open to further policy easing amid concerns over lackluster economic growth.
It was the fifth ECB rate cut since June and markets expect as many as three more reductions this year.
Further evidence of the difficulties the German economy, the largest in the eurozone, is suffering came with the release of the latest retail sales data, which showed a fall of 1.6% on the month in December.
Investors will also study preliminary inflation readings from Germany, after the French consumer price index for January rose below the ECB’s 2% medium term target.
Across the pond, December's core PCE price index in the United States - the Federal Reserve's preferred measure of inflation - is set for release later in the session, and could provide further clues on the central bank's rate outlook.
Novartis boosted by strong demand for key drugs
In the corporate sector, Novartis (SIX:NOVN) stock rose 4% after Swiss drugmaker reported strong fourth-quarter results Friday, citing strong demand for established heart failure drug Entresto and multiple sclerosis drug Kesimpta.
Salvatore Ferragamo (BIT:SFER) stock gained 6% after the Italian luxury group reported fourth-quarter 2024 sales that came in largely in line with expectations.
SKF (ST:SKFb) stock fell 1.5% after the Swedish manufacturing company forecast a small drop in organic sales for the first quarter of 2025, and decided against providing full-year forecasts, citing market uncertainty.
On Wall Street, Apple (NASDAQ:AAPL) stock rose 4% premarket after the tech giant reported first-quarter results late Thursday that beat expectations as stronger services revenue offset weaker iPhone sales at a time when competition from smartphone rivals in China persists.
Crude set for weekly losses
Oil prices slipped lower Friday, and were set for weekly losses as traders fretted over the prospect of trade tariffs under US President Donald Trump.
By 07:10 ET, the US crude futures (WTI) dropped 0.1% to $72.68 a barrel, while the Brent contract fell 0.1% to $75.83 a barrel.
Investors are contemplating the likelihood of US tariffs on Canadian and Mexican exports to the United States as early as Saturday if those two countries do not end shipments of fentanyl across US borders.
Additionally, Trump has threatened the BRICS group of countries - which includes top importer China - with 100% tariffs over their attempts to replace the US dollar.
For the week, Brent is set to fall 1.6% while WTI has declined 1.8%. However, for the month of January, Brent is set to gain around 3%, its best month since June, and WTI is poised to climb 2.1%.