The European markets continued the upward rally Friday, a day after the European Central Bank (ECB) announced the widely anticipated bond-buying program aimed at lowering the struggling euro zone countries' borrowing costs.

The French CAC 40 index was up 1.21 percent or 42.34 points to 3,552.22. Shares of BNP Paribas SA advanced 3.39 percent and those of Credit Agricole SA rose 7.3 percent.

London's FTSE 100 index rose 0.30 percent or 17.15 points to 5794.49. Shares miner Rio Tinto PLC gained 4.43 percent and banking major HSBC Holdings Plc picked up 2.97 percent. 

The German DAX 30 index rose 0.87 percent or 62.06 points to 7,229.39. Shares of Commerzbank AG added 6.71 percent and Deutsche Bank AG gained 4.58 percent.

Spain's IBEX 35 was up 1.77 percent or 139.50 points to 8,001.50.  

The ECB Thursday unveiled a plan to buy the sovereign bonds of debt market strugglers that would make borrowing cheaper for the debt-laden countries and boost liquidity. Though it came with riders, the decision triggered an upward rally in global markets Thursday.

The European markets along with Asian markets extended gains Friday, as the positive sentiment created by the ECB move in the previous session continued to offer the support.

The market players are expecting a better U.S. job data to be released later Friday. The rebound in ISM services jobs component, combined with surge in private sector hiring, raised hopes that August employment report would be better than the initial consensus indicated.

"Market focus will now shift to the payrolls data which are likely to provide direction for EUR/USD. The better than expected print in the ADP employment report as well as a stronger-than-expected ISM nonmanufacturing index have built up market expectation for a larger gain in August payrolls than initially expected." Credit Agricole said in a note.

German exports data for July also showed an unexpected surge in export figures, further boosting the investor sentiments.

Investors also welcomed the China government's clearance for 60 infrastructure projects this week, in an attempt to stimulate the economic growth. Chinese decision is expected rebound growth by the end of the year.

The market analysts expect the momentum gained from the series of positive news to continue in short term.

"I am positive on the market in the near term. You have got the policy response coming through, valuations are still OK and the macroeconomic backdrop isn't all that bad. These three things add to the momentum in the market," Graham Bishop, equity strategist at Exane BNP Paribas, told Reuters.