Europe open: Markets jump on Sino-US trade breakthrough
European stocks surged on Friday morning on news the US and China had reached an initial trade deal and the Conservative Party victory in the UK General Election.
The Stoxx 600 was up by 1.6% at 414.23, as Germany's Dax jumped by 1.2% to 13,381.16 and the French CAC 40 climbed by 1.1% to 5,949.03 and London's FTSE 100 leapt by 1.6% to 7,386.41.
Reports suggested that Beijing will avoid being slapped with a new round of tariffs after US President Donald Trump signed off on a deal to halve the existing duties on about $360bn of Chinese goods.
Oanda analyst Craig Erlam said: "While markets are trading higher on the back of these reports, there is an element of caution about the moves we've seen so far. Investors have been too eager before to buy into a trade deal and may be a little reluctant to be so again but should this get over the line, this year's Santa rally may really take off."
However, officials from Beijing have remained silent about any deal, with Chinese foreign ministry spokeswoman Hua Chunying merely reiterating that any agreement would have to be mutually beneficial in a daily briefing on Friday.
The Stoxx 600 was also driven higher by stocks with UK exposure following the Conservative Party's decisive election victory.
Markets.com analyst Neil Wilson said: "Anything largely exposed to the UK economy took off at the open, while the drag on dollar earners from the stronger pound was not so large as to worry the market. It all points to a huge vote of confidence in the prospects for the British economy as a result of the Tory win."
Housebuilders and banks surged, with Persimmon, Taylor Wimpey, Virgin Money, Barratt Developments, RBS and Lloyds all racking up strong gains.
Meanwhile, Delivery Hero was also sharply higher after it agreed to buy South Korean takeaway delivery outfit Woowa Brothers for $4bn.
German consumer goods producer Henkel dropped after it warned that the slowing demand experienced by its adhesives unit will lead to a decline in margins next year.