European stock markets drifted higher on Friday in subdued trading before the weekend, as sentiment was lifted by more record gains on Wall Street, dealers said.

London's FTSE 100 benchmark index added 0.16 percent to 6,676.73 points in afternoon, Frankfurt's DAX 30 gained 0.10 percent to 9,158.91 points and in Paris the CAC 40 won 0.15 percent to 4,290.23 compared with Thursday's closing levels.

The European single currency climbed to $1.3486 from $1.3459 late in New York on Thursday.

The dollar hit a two-month high of 100.44 yen, helped by weak data in Japan and the eurozone. It later stood at 100.20, up from 100.00 on Thursday.

However, the euro fell to 83.66 pence against the British pound, which was higher at $1.6123.

On the London Bullion Market, the price of gold slid to $1,281.75 an ounce from $1,286 on Thursday.

Wall Street had forged fresh record highs on Thursday, shrugging off some disappointing earnings results amid greater confidence the Federal Reserve will wait longer before scaling back its aggressive stimulus program, known as quantitative easing (QE).

Markets were boosted as the woman tipped to take over as Fed chief, Janet Yellen, indicated she would maintain its stimulus policy for as long as needed.

"The positive sentiment from the record highs in US indices last night has found its way into European trade," said analyst Brenda Kelly at trading firm IG.

"The FTSE has pushed marginally higher on expectations that the Fed QE punchbowl contains enough servings for another few rounds."

She added: "The more risky equities are gathering momentum, with basic materials, energy and financial sectors all on the front foot."

Miners Fresnillo topped the FTSE risers board in London, gaining 2.5 percent to stand at 938 pence.

In Paris, Arcelor Mittal stock rose 0.36 percent to 12.50 euros.