European stocks rise to four-month high after the U.S. and EU strike trade agreement

European autos index up 1.5%

Europe's carmakers jumped on Monday morning, reacting positively to news that the U.S. and European Union have secured a framework trade agreement.

U.S. President Donald Trump on Sunday said the trade agreement, which will see Washington reduce tariffs to 15% on EU goods entering America, will be “great for cars.”

The Stoxx Europe autos index led gains during early morning deals, up more than 1.5%.

French car parts supplier Valeo was last seen up 5%. Jeep maker Stellantis, Porsche and Mercedes-Benz Group were all up more than 2%.

European stocks hit four-month high

European stocks have risen to hit a four-month high after the U.S.-EU agreed to a trade deal.

The Stoxx Europe 600 index rose 0.8%, with other regional bourses also trading higher.

The U.K.'s FTSE 100 was up 0.3%, France's CAC 40 was higher by 1.1% and Germany's DAX rising 0.7%.

Heineken beats profit expectations

Heineken posted a beat on first-half operating profit, coming in at just over 1.4 billion euros ($1.6 billion).

The brewer is backing its guidance for the year, saying it expects organic profit to grow between 4-8%.

Opening calls

Good morning from London.

There's just under an hour and a half to go until stocks begin trading for the first time since the U.S. and European Union agreed to a trade deal.

Futures tied to the Stoxx Europe 600 index point to a strong start with the index expected to open 0.8% higher.

Regionally, the German DAX is expected to rise 1%, France CAC 40 index is set to be 0.4% higher and the U.K.'s FTSE 100 is expected to rise 0.5%.

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