European stocks and the euro advanced with Italian bonds as the country forms a new government and optimism grew central banks will maintain loose monetary policy to boost growth. Gold strengthened.
The Stoxx Europe 600 Index added 0.5 percent as of 8:16 a.m. in London, extending its biggest weekly increase in five months. Standard & Poorâ€™s 500 Index futures gained 0.3 percent. The euro strengthened 0.4 percent against the dollar, while New Zealandâ€™s currency rallied 0.5 percent. Yields on Italian 10- year bonds fell nine basis points to 3.97 percent. Gold increased 0.9 percent and crude was little changed in New York.