LONDON (The Deal) -- European markets were mixed on Friday, with the London benchmark gradually erasing early gains as Prime Minister David Cameron entered a second day of talks with European Union leaders about a new membership deal for the U.K., which he hopes will prevent the electorate voting for a "Brexit" in an upcoming referendum.

In London, the FTSE 100 inched up 0.04% to 5,974.55. In Frankfurt, the DAX fell 0.35% to 5,974.55 and in Paris the CAC 40 edged down 0.04% to 4,238.09.

S&P 500 500 futures were unchanged at 1,916.50.

In the U.K., January retail sales data, as measured by the Office for National Statistics, came in much stronger than expected. But in Germany an above-forecast decline in producer prices in January fed deflation worries. On Thursday, European Central Bank minutes suggested policymakers were braced to provide additional stimulus to shore up the economy given increased risks.

Insurer Standard Life (SLFPY)  was up 1.3% in London on better-than-expected full-year results.

In Frankfurt, insurer Allianz pared losses during the course of the morning to trade down about 1.2% after full-year results revealed a weaker-than-expected performance in December.

In Paris, Vivendi (VIVHY) rose marginally and Gameloft was up about 17% after the French media giant launched a hostile bid for the games maker. The offer values Gameloft's equity at €513 million ($569.1 million).

Ubisoft Entertainment, in which Vivendi owns more than 10%, was up more than 5% in Paris.

Also in Paris, luxury goods maker Kering (PPRUY) was up more than 2% on full-year results featuring a forecast-busting performance in the fourth quarter even as global macro-economic uncertainties intensified.

Car parts maker Valeo (VLEEY) was up more than 4% after 2015 results showed strong revenue growth and even stronger growth in its net profit, which was up 30% at €729 million as operating margins expanded.

In Tokyo, the Nikkei 225 fell 1.42% to 15,967.17 and the Topix declined 1.48% to 1,291.82.

In Hong Kong, the Hang Seng slipped 0.40% to 19,285.50 and on mainland China the CSI 300, which takes in stocks listed in both Shanghai and Shenzhen, slipped 0.07% to 3,051.59.