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 03:05 ET (08:05 GMT), the DAX index in Germany climbed 0.1%, the CAC 40 in France gained 0.2% and the FTSE 100 in the UK rose 0.2%.

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) reported strong fourth-quarter results Friday, with the Swiss drugmaker citing strong demand for established heart failure drug Entresto and multiple sclerosis drug Kesimpta.