The U.S. and Europe have a new trade deal that includes 15% import tariffs on many European goods, including cars. That’s good news for the European auto industry, but investors didn’t react happily in Monday trading.

European stocks rose to a four-month high on Monday after the US and EU reached a tariff deal that looks set to avert a full-blown trade war. The broad Stoxx Europe 600 index was up 1 per cent in early trading, while Germany’s Dax gained 0.9 per cent and France’s Cac 40 climbed 1.2 per cent.

Europe's major stock markets made modest gains while the euro fell in early trading on Monday as investors greeted a trade agreement between the United States and European Union with cautious relief.