By Carla Mozee, MarketWatch

LONDON (MarketWatch) -- Equities across Europe jumped Friday, with gains fueled by action and assurances from two major central banks, as policy makers in China and Europe seek to bolster economic growth.

During the European trading day, the People's Bank of China said it's cutting interest rates and that it will inject more liquidity into the banking system if needed. The move comes after a number of recent disappointing updates from the world's second-largest economy, including a further pullback in prices for China's key property sector.

European stocks had been pushed higher earlier in the session, after ECB President Mario Draghi signaled the central bank is set to expand its asset-purchase programs if there's indication inflation is stuck at stubbornly low levels.

"If on its current trajectory 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," said Draghi at a banking conference in Frankfurt, Germany.

Markets: Mining stocks were propelled higher after the PBOC rate cuts, as China is a major buyer of metals. Rio Tinto PLC (RIO) rallied 3.8%, BHP Billiton PLC (BHP) surged 3.5%, Anglo American PLC rose 3.6% and steel heavyweight ArcelorMittal SA (MT) added 5%.

The gains helped push the Stoxx Europe 600 up 1.4% to 342.96. Also among top advancers, shares of Norwegian oil-services company Aker Solutions ASA climbed 5.4%, and oil and gas producer Tullow Oil PLC picked up 5%.

But the euro (EURUSD) dropped against the dollar on prospect for stepped-up action by the ECB, sending the shared currency down to $1.2430, compared with$1.2563 late Thursday in North American trade.

In his speech, Draghi referred to Thursday's disappointing reading on manufacturing and services activity from the eurozone. The November flash PMI composite index came in at 51.4, the lowest level in 16 months, according to data compiled by Markit.

The PMI data "is a blow to EU economic sentiment," after this week's ZEW survey indicated the economic mood is improving in Germany, wrote Jameel Ahmad, chief market analyst, at FXTM, in an early Friday note.

But the eurozone's woes may not solely rest on the ECB's failure to successfully introduce new stimulus measures, Ahmad said. China's economy has been slowing, and Japan has entered recession, two countries with which Europe actively trades. Weak investor confidence alongside low inflation is also likely limiting demand for trade among eurozone nations, and sanctions imposed on Russia "might be having a detrimental impact on EU sector growth," he said.

In Frankfurt, the DAX 30 equity index shot up 1.9% to 9,661.21. France's CAC 40 index rose 1.6% to 4,201.49, and the U.K.'s FTSE 100 rose 0.9% to 6,739.72.

The Stoxx 600 was on track for 2.4% weekly rise, which would mark the biggest weekly advance since the end of October.

Among movers in Europe, TalkTalk Telecom Group PLC shares fell 1.7% after its rating was cut to sell from hold at Berenberg.

Shares of Bouygues SA leapt 3.5% after the chief executive of telecom holding firm Altice SA said it would be interested in buying Bouygues Telecom if its parent company wanted to sell it.

You're invited: A free evening event focusing on investing opportunities in Europe

Will you be in London on Dec. 3? Then you're invited to our MarketWatch Investing Insights event, "The worse Europe gets, the more you should invest."

Governments are in trouble, reform efforts have stalled, unemployment is climbing. The news from the eurozone is bleak, and investors are fleeing. But that's a mistake: The worse the economic data from Europe get, the more you should be buying. Why? Because actions by the ECB will boost asset prices and the stock market in particular. And, big exporters can grow sales. Lower costs and steady sales translate into higher profits and dividends. Join us for an evening of cocktails and conversation to explore these opportunities.

Our panel will be led by MarketWatch Columnist Matthew Lynn, a renowned financial journalist based in London and the author of "Bust: Greece, the euro and the Sovereign Debt Crisis." He'll be joined by Mark Hulbert, MarketWatch columnist and editor of the Hulbert Financial Digest.

This event is free, but RSVPs are required. It will be held Wednesday evening, Dec. 3, in London. For more information or to RSVP, send an email to marketwatchevent@wsj.com.

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