European stocks jump on U.S. stimulus aid support, Brexit deal relief

On Monday European stocks gained after U.K. and the European Union signed a long awaited trade deal, while a bumper U.S. stimulus package boosted investor sentiment for riskier global assets.

U.S. President Donald Trump on Sunday signed into law a $2.3 trillion pandemic aid and spending package, restoring unemployment benefits to millions of Americans and averting a federal government shutdown in a crisis of his own making.

The benchmark European stock index jumped 0.5%, with automakers and energy stocks gaining the most. Also supporting sentiment was Europe’s cross-border vaccination programme launched on Sunday, fuelling hopes of a pandemic-free second half of 2021 and of a strong economic rebound. Britain signed the Brexit trade deal late on Thursday, just seven days before it exits one of the world’s biggest trading blocs.