European markets slightly higher as investors digest fresh economic data; German inflation falls

This is CNBC's live blog covering European markets.

European markets were slightly higher Friday as investors digest the latest slew of corporate earnings and economic data.

The pan-European Stoxx 600 was up 0.1% in early deals, with sectors trading in mixed territory. Health-care stocks were 1% higher, while utilities dropped 0.9%.

L'Oreal shares fell more than 7.3% in early deals, before slightly paring losses, as the company reported lower-than-expected sales and pointed to a slowdown in demand in Asia. Meanwhile, Hermes shares rose up 4.5% on the back of a strong earnings report.

German inflation fell in January to 3.1% in a buoying sign for Europe's largest economy, new data from the the federal statistical office showed Friday.

In Asia-Pacific, Japan's Nikkei hit fresh 34-year highs on Friday, while most markets were either fully or partially closed for the Lunar New Year holiday. The Nikkei 225 breached the 37,000 mark for the first time in 34 years, rising 0.4%, while the Topix was flat.

Stateside, U.S. futures were lower Friday morning after the S&P 500 crossed the historic 5,000 milestone for the first time during intraday trading.

Barclays agreed to buy the majority of Tesco's banking business in a deal worth £600 million ($756 million).

Barclays will take over Tesco Bank's credit cards, loans and savings accounts as the U.K. supermarket chain retreats from its move into financial services.

Shares of Tesco were up 0.9% in early deals while Barclays shares fell 1.2%.

— Karen Gilchrist

Shares of French video game Ubisoft maker were up 15% in early deals as the company pointed to a "turnaround" in its output in its latest earnings report.

Meanwhile, L'Oreal shares were down 7% after reporting lower-than-expected