Stocks rise as investors cheer trade deal

European stocks took their cue Monday (December 16) from events in Beijing:

(SOUNDBITE) (Mandarin) CHINA'S NATIONAL BUREAU OF STATISTICS SPOKESMAN, FU LINGHUI, SAYING:

"The two sides have reached an agreement on the first phase of the text agreement, which should reduce market uncertainty."

A Chinese spokesman confirming that a deal has been struck with Washington to ease trade tensions.

Though Chinese sources cautioned that the phase one agreement did not guarantee a full settlement.

Even so, Europe's Stoxx 600 index jumped one percent in early trade, hitting a record level.

Earlier in Asia, MSCI's broadest index of the region's stocks edged up to an eight-month high.

There was even more bullish sentiment in London... that after last week's election victory for Prime Minister Boris Johnson.

The FTSE 100 rose over 2 percent from the open.

Sterling too gained.

Investors continue to bet that the new government will mean a quick, smooth Brexit, and an end to years of political turmoil.

Around Europe, the picture was more nuanced.

Gains for Germany's Dax index were limited by more downbeat economic data.

Private sector activity there shrank for a fourth month, according to the latest Purchasing Managers' Index.