European shares edged higher

European shares climbed on Monday for a fourth straight session as relief over long-awaited U.S. economic stimulus and a post-Brexit trade deal lifted investor mood in thin holiday trading.

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% to its highest since Feb. 26, with automakers and energy stocks gaining the most.

London markets were shut for Boxing Day but stocks in Germany, a major supplier of autos to the UK, climbed to a record high, signalling optimism around the Brexit trade deal.

Huge amounts of stimulus and vaccine optimism have seen the STOXX 600 recover nearly 43% from its March lows, though it is on course to end the year about 4% lower.

Among other European bourses, France’s CAC 40 index and Spain’s IBEX gained nearly 0.7% each, as of 0900 GMT.

Britain signed the Brexit trade deal late on Thursday, just seven days before it exits one of the world’s biggest trading blocs.

Avadoot Shah

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