2014.11.2112:08:00UTC+00European Stocks Skyrocket As Draghi Signals Stimulus Imminent

European stocks surged Friday, extending this week's strong gains after European Central Bank President Mario Draghi repeated vows to stoke inflation with monetary stimulus.

Draghi said the ECB will expand its asset purchase program if inflation fails to soon show signs of returning to the targeted level. "If ... our policy is not effective enough to achieve this, or further risks to the inflation outlook materialize, we would step up the pressure and broaden even more the channels through which we intervene, by altering accordingly the size, pace and composition of our purchases," he said to bankers in Frankfurt.

A surprise interest rate cut from China also lifted spirits, driving notable gains among metals and energy stocks.

The Euro Stoxx 50 index of eurozone bluechip stocks soared 2.97 percent, for a weekly gain of 4.39 percent.

The German DAX jumped 2.62 percent, the French CAC 40 rose 2.67 percent and the FTSE 100 index of the U.K. rose 1.08 percent.

In Frankfurt, HeidelbergCement rose 4.6 percent. Berenberg raised its price target on the stock.

E.ON added 2.7 percent and RWE gained 2.5 percent, after UBS upgraded the stocks to "Neutral" from "Sell."

SAP rose 2.3 percent. Jefferies started the stock with a "Hold" rating.

In Paris, Orange rose 5 percent. The company reportedly is weighing a strategic alliance in the U.K.

Bouygues SA rose almost 4 percent after the chief executive of telecom holding firm Altice SA said it would be interested in buying Bouygues Telecom.

TalkTalk Telecom fell 3.7 percent on a rating downgrade.

Technip added 2.7 percent after announcing a contract award.

Airbus is rising 1.9 percent. US-based Delta Airlines confirmed an order to buy 50 planes from the French aerospace giant.

Meanwhile, Ophir Energy fell 5.6 percent after announcing an offer for Salamander Energy.