Global stocks rise as investors cheer phase one U.S.-China trade deal

On Monday, global shares rose, trading on a notch below a record high hit last week during the preliminary US-China trade deal.

The pan-European STOXX 600 index rose by 1% and hit a record high in the early trade. 

Germany's DAX was up 0.5%.

Britain's FTSE 100 index rose 1.14%, moving in tandem with the pound, which rose 0.4%.

U.S. stock futures also pointed to stronger gains to start the week, with the S&P 500 e-minis up 0.3%.

According to Robert Lighthizer, the trade deal was done, and that would double U.S. exports to China over the next two years.

The "phase one" agreement suspended a threatened round of U.S. tariffs on Chinese goods. 

The United States also agreed to halve the tariff rate, to 7.5%, on $120 billion worth of Chinese goods.

The 17-month-old trade dispute between the two countries has roiled financial markets and taken a toll on world economic growth.

Positive sentiment helped push MSCI's All Country World Index up 0.15%. 

The index, which tracks stocks across 47 countries, hit an all-time high on Friday when the trade deal was agreed.

"We may have reached the point of 'peak tariffs,' and this deal could be the start of a series of phased rollbacks, which could unlock further upside for equity markets, driven by an improvement in business confidence and a recovery in investment," said Mark Haefele

Mark is the chief investment officer, UBS Global Wealth Management, in a note to clients.

Earlier in Asia, MSCI's broadest index of Asia-Pacific shares outside Japan to its highest level since April 18. It was last up by 0.13%.

Positive mood after US-China phase one deal

Chinese investors initially had a more lukewarm reaction to the trade news, with the blue-chip CSI300 index struggling to rise further after trade hopes fanned a near 2% rise on Friday.

But after a lackluster morning session, the CSI300 index turned higher in the afternoon.

It was last up 0.3%, helped by data showing the country's industrial output growth and retail sales jumped more than expected in November.

Felsman at CommSec said investors wanted more details, and the reduction in U.S. tariffs may have disappointed some looking for more aggressive action.

However, the news of a deal was still enough to send the S&P 500 to a record closing high of 3,168.8, up 0.01%. 

The Nasdaq Composite added 0.2% to end at 8,734.88, also a record, and the Dow Jones Industrial Average rose 0.01% to 28,135.38.

U.S. Treasury yields moved higher on Monday, reflecting a more positive mood. Benchmark 10-year Treasury notes rose to 1.8452% compared with their U.S. close of 1.821% on Friday, and the two-year yield touched 1.6304% compared with a U.S. close of 1.604%.

The dollar was slightly higher against the yen at 109.45, and the euro was up 0.13% at $1.1135.

Oil prices, which had risen on Friday following the deal, climbed further on Monday. 

Brent crude rose 0.1% to $65.28 per barrel, and U.S. West, Texas Intermediate crude, was down 0.05% at $60.11 per barrel.

Spot gold prices were down 0.06% at $1,474.64 per ounce.