European stocks are rising amid US-China trade deal; Stoxx 600 reaches record high

The pan-European Stoxx 600 added 1.1% by mid-morning, exceeding 416.6 and reached a record high. Core resources grew by 2.3%, as all sectors and major exchanges entered positive territory. Shares of banks and financial services rose 1.4% and 1.5%, respectively.
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Washington and Beijing announced on Friday that an agreement had been reached pending legal proceedings, a significant step forward after a tiring 18-month trade war.
However, market participants asked questions about some of the details of the deal, which remain vague, in particular about the scale of purchases of agricultural products and the prospect of balancing bilateral trade flows in China.
Asian stocks on Monday were mixed with mainland China stocks, which jumped amid better-than-expected data on industrial production, while indices in Japan and Hong Kong fell.
Returning to Europe, British Prime Minister Boris Johnson will meet 109 new conservative lawmakers in parliament on Monday, promising to move ahead quickly with Brexit and increase funding for the National Health Service (NHS).
According to some reports, the Chinese BAIC plans to double its stake in German automaker Daimler in an attempt to win a seat on the board of directors and challenge rival Geely.
As for the data, IHS Markit forecasts for composite euro-zone PMI flash indices for December were recorded in line with expectations at 50.6, while results in the services sector offset more disappointing performance.
The index of business activity in the manufacturing sector was 45.9 against the forecast 47.3 compared with 46.9 in November.
UK flash data showed that both the service and manufacturing sectors contracted sharply more than expected in December. The PMI composite index reached 48.5, the lowest level since the mid-2016, suggesting that the fifth-largest economy The world is in the process of shrinking in the fourth quarter.
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