The European stock market rose on Monday. On the first trading day after the EU and the UK reached a Brexit trade agreement, the German DAX index hit a record intraday high.

The Stoxx Europe 600 Index rose 0.7%. The UK market was closed on Monday due to the holiday, and British stocks traded on the German Tradegate exchange also rose.

The trade agreement reached between the UK and the EU last Thursday will complete the separation of the UK from the EU. The European market was closed after the agreement was reached, and the market was closed for one day last Friday to celebrate the Christmas holidays. In the US, President Trump signed the $900 billion pandemic relief bill.

The Brexit trade deal “will usher in Christmas cheers in the financial markets,” James Athey, investment director at Aberdeen Standard Investments, said via email. “It remains to be seen whether Christmas cheers will be replaced by a New Year's hangover as analysts begin to scrutinize the details.”