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By Bloomberg

European stocks rose, extending their best start to a year in 26 years, amid earnings reports and increased deal activity.

The Stoxx Europe 600 Index added 0.3 percent to 370 at 8:07 a.m. in London. The gauge has advanced 8.1 percent in January as the European Central Bank announced a 1.1 trillion-euro ($1.2 trillion) asset-purchase plan. A report at 11 a.m. Frankfurt time is projected to show a second month of deflation in the euro area, after Germany’s consumer-price index turned negative for the first time since 2009.

IAG SA rallied 2.7 percent after Qatar Airways Ltd. bought a 9.99 percent stake in British Airways parent. Salvatore Ferragamo SpA rose 2.4 percent after 2014 sales growth excluding currency swings beat analysts’ estimates.

U.S. stocks rose yesterday as energy shares reversed losses and Federal Reserve Chair Janet Yellen told Democratic lawmakers that there were no plans to raise interest rates immediately, according to Senator Chuck Schumer. Her comments came amid investor concern over a rate increase after the Fed this week boosted its economic assessment. Futures on the Standard & Poor’s 500 Index fell 0.2 percent.

Greece’s ASE Index has tumbled 13 percent this week, with banks leading the decline, amid concern a new government will backtrack on an austerity program. It pared some losses yesterday after the head of ECB’s Supervisory Board said the nation’s lenders can survive the current market turbulence.

Other stocks moving after results include BT Group Plc, which lost 0.8 percent after reporting third-quarter earnings in line with analysts’ estimates. The U.K.’s largest landline carrier was up 6.7 percent this month through yesterday’s close.

Tele2 AB slid 3.4 percent after reporting fourth-quarter earnings that fell short of the average analyst estimate in a Bloomberg survey.