German DAX Reaches Record, Leads Gains Across European Equities

European stocks rallied on Monday, sending Germany’s DAX Index to a record high in the first trading session after the European Union and the U.K. reached a final agreement on Brexit terms.

The Stoxx Europe 600 Index added 0.7% and the Euro Stoxx 50 gained 0.9%. While the British market was closed for a holiday, a number of U.K. shares rose on Germany’s Tradegate exchange.

On Thursday, the U.K. and the EU clinched a trade deal that will complete Britain’s separation from the bloc. European markets were already closed when the agreement was reached and have remained closed in observance of the Christmas holidays. In the U.S., President Donald Trump signed a bill containing $900 billion in pandemic relief, boosting investors’ risk appetite and sending the S&P 500 Index to an all-time high.

German DAX Reaches Record, Leads Gains Across European Equities

The Brexit deal “will be greeted by financial markets with Christmas cheer,” James Athey, investment director at Aberdeen Standard Investments, said by email. “It remains to be seen if that Christmas cheer gives way to a New Year hangover when analysts start poring over the details.”

Shares in Delivery Hero SE surged 9.1% after the company secured antitrust clearance of its acquisition of Woowa Brothers, South Korea’s largest food-delivery service.

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