France’s CAC 40 rose 1.3%, the Swiss SMI by 1.8% and the German DAX index closed up 1.5% on Monday afternoon. The UK FTSE 100 index was closed for the Christmas holidays.
Trump avoided a government shutdown on Sunday night and extended unemployment benefits to millions of Americans. The signing came days after Trump suggested he would veto the legislation, demanding direct payments of $ 2,000 to Americans, instead of $ 600. Wall Street shares rose on the news.
In Asia, Alibaba shares in Hong Kong fell more than 8% for the second straight session after Chinese regulators ordered Alibaba subsidiary Ant Group to rectify its operations.
Back in Europe, traders reacted to the announcement of a Brexit trade deal between the UK and the EU. The deal, sealed after markets closed on December 24, is yet to be approved this week by UK lawmakers before the December 31 deadline. On Monday, the 27 ambassadors of EU member countries officially approved the deal.
In individual stock market news, the Italian company Saipem saw its shares increase by 4% after signing an agreement with the Italian Navy. German Deutsche Post closed 2.7% higher after its CEO said the company expected record profit for 2020.
—CNBC’s Eustance Huang and Yun Li contributed to this article.