Global stocks rose and the euro appreciated on Monday after a trade agreement between the United States and the EU lifted sentiment and provided some clarity in a week of key policy meetings by the Federal Reserve and the Bank of Japan.

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.

The deal struck by President Donald Trump and Urusula von der Leyen, president of the European Commission, on Sunday at the former’s Scottish golf course will set a tariff rate of 15pc for most goods, down from a threatened 30pc. Full details are yet to be confirmed and a written next still needs to be agreed by EU member states.