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Mario Draghi, head of the European Central Bank (ECB), arrives to speak to journalists following a meeting of the ECB governing board on January 22, 2015 in Frankfurt, Germany.Hannelore Foerster/Getty Images

Stocks rose in Europe and Asia while bond yields fell to record lows from Italy to Spain as the European Central Bank's expansion of asset purchases sent the euro to an 11-year low. Oil advanced after the death of Saudi Arabia's King Abdullah.

The Stoxx Europe 600 Index added 1.3 per cent at 10:40 a.m. in London, and shares in Asia gained for a fifth day. Standard & Poor's 500 Index futures were little changed before earnings from companies including General Electric Co. and McDonald's Corp. The bond rally sent Italy's 10-year borrowing costs below 1.5 per cent for the first time. The euro weakened 1.1 per cent to $1.1246. Brent crude advanced 1.8 per cent to $49.38 a barrel.

ECB President Mario Draghi unveiled a quantitative-easing program valued at €1.14-trillion ($1.3-trillion) on Thursday and pledged to spend until there's a "sustained adjustment" in inflation. Prince Salman, named as Abdullah's successor, will probably continue his predecessor's policy of maintaining oil production to preserve the country's 20 per cent share of global crude sales. U.S. existing home sales probably rose in December, while an index of leading indicators slipped, economists said before reports today.

"The strong commitment from Draghi to wipe out fears about the euro zone's sustainability is good news," said Pierre Mouton, who helps oversee $8-billion at Notz, Stucki & Cie. in Geneva. "Liquidity to the banking system should improve credit conditions, and thus economic growth. That will benefit equities. The ECB has given a time frame and the size of its QE is very helpful. Investors know they'll be helped by the ECB for the next 18 months at least."

Portugal Telecom

More than three shares gained for every one that declined in the Stoxx 600, with trading volumes more than double the 30– day average, data compiled by Bloomberg show. The gauge has climbed 4.7 per cent this week, heading for its biggest weekly jump December 2011 and extending a seven-year high.

Under the stimulus program, the ECB will purchase €60-billion a month through September 2016, which will probably comprise about €45-billion in investment-grade sovereign bonds, €5-billion in the debt of euro-area public agencies and €10-billion under existing programs to buy asset-backed securities and covered bonds, a euro-area official said.

Portugal Telecom SGPS SA jumped 14 per cent and Altice SA advanced 6.2 per cent after shareholders of the Portuguese carrier approved the sale of Oi SA's Portuguese telecommunications assets to Altice, paving the way for consolidation in Brazil's phone market. Telecom Italia SpA, which controls Tim Participacoes SA in the South American nation, climbed 5 per cent.

O2 Talks

Telefonica SA added 2.9 per cent as Hutchison Whampoa Ltd. has entered exclusive negotiations to buy its U.K. wireless carrier O2.

Thales SA fell 3.7 per cent after saying it expects a reduction in 2014 profit because of losses at DCNS, the warship maker in which it owns a 35 per cent stake.

S&P 500 futures expiring in March climbed after the index erased its losses for the year, closing at its highest level since Dec. 30. The gauge has risen 2.2 per cent in the past three days, heading for its first weekly advance of 2015.

About 79 per cent of the 82 companies in the S&P 500 that have posted earnings this season have beaten analyst estimates, while 52 per cent topped sales projections, data compiled by Bloomberg show.

Emerging Markets

The MSCI Emerging Markets Index advanced for a fourth day, rising 0.9 per cent to the highest since Dec. 4. The gauge rally 3.6 per cent this week, the most since March.

The Shanghai Composite Index climbed 0.3 per cent, leaving it 0.7 per cent lower over five days and ending a 10 week rally. The Hang Seng China Enterprises Index of mainland companies listed in Hong Kong advanced 1.6 per cent, sending the gauge to its first weekly gain in three weeks.

The preliminary China purchasing managers' index from HSBC Holdings Plc and Markit Economics was at 49.8 in January, up from 49.6 a month earlier and exceeding the median estimate of 49.5 in a Bloomberg survey. Numbers below 50 indicate contraction.

Russia's Micex advanced 0.9 per cent and the ruble strengthened 0.3 per cent, heading for its best week this year. The currency pared earlier gains after Interfax news service reported Donetsk rebels ruled out truce talks with Ukraine.

Oil Glut

Oil rose 1 per cent to $46.76 a barrel in New York. Saudi Arabia, the world's largest crude exporter, led OPEC's decision to maintain its oil-production quota at a meeting in November, exacerbating a global glut that's driven prices lower.

Copper headed for a sixth weekly loss, falling 1.2 per cent in London.

Bonds surged across the euro area on speculation the ECB will need to pay higher prices to convince holders of the securities to sell them.

Germany's 10-year yield fell as much as nine basis points, or 0.09 percentage point, to a record 0.359 per cent while rates on the nation's 30-year debt approached 1 per cent. Portugal's 10-year yield fell 21 basis points to 2.38 per cent.

The rally spread top debt markets around the world on bets the drop in yields on European bonds would push investors to seek alternatives overseas. The 10-year gilt yield reached 1.44 per cent, the least since August 2012. Treasury 10-year note yields dropped five basis points to 1.82 per cent.

Credit-default swaps insuring against losses on European government debt headed for a second weekly decline. Contracts on Spanish, Italian and Portuguese debt fell to the lowest levels in at least two months, while contracts on Germany were little changed.

Greek Elections

Greece's bonds also rose before a general election in the nation on Jan. 25. The three-year note yield dropped 62 basis points to 9.72 per cent.

Concern an anti-austerity party will take power in Greece exacerbated the euro's drop after the ECB widened its stimulus program. The currency fell to as low as $1.1220 and reached 75.01 British pence, the weakest level since 2008.

Australia's dollar slid below 80 U.S. cents on rising speculation the central bank will cut interest rates next month. Norway's krone weakened 1.2 per cent against the greenback to 7.7452.

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