China and the United States have reached an agreement on the text of the first phase of the economic and trade agreement. On the back of the news, global stock markets surged again on Friday, with several indexes hitting record highs.

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The MSCI world index, which measures the performance of major global stock markets, rose 0.7 percent on Friday before hitting a record high on Friday.

The three major indexes in New York hit a record high today. The dow was up 0.36%, the s&p 500 up 0.71% and the nasdaq up 0.91%.

The pan-european stoxx 600 index, a gauge of European stocks, rose 1.39 percent to a record high on Monday. In London, the ftse 100 index jumped 2.25 per cent, its biggest one-day gain in almost a year. The French stock market rose 1.23 percent in Paris. German shares rose 0.94%.

Asia-pacific markets were also strong. In Tokyo, the nikkei 225 stock average closed up 2.55 percent, the biggest gain of the year. South Korean shares rose 1.54 per cent. On the morning of the 17th, the asia-pacific stock market continued to rise.

"Markets around the world have been expecting positive signals about the us-china talks and now they are getting them." Artem jeev, director of the analysis department of Russia A market company.

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Mark otto, a senior trader at the New York stock exchange, said the move to agree on a text for the first phase of the economic and trade agreement had brought optimism to stock markets and would have a positive ripple effect on the global economy. "With the recent run, it's almost certain that we're in for a 'Christmas rally.'"

Mark haefer, chief investment officer at ubs global wealth management, said the development was significant and could signal that the two countries had reached a "tariff peak" and would then enter a tariff correction phase, helping to boost business confidence and investment recovery and providing further upside for equities.

The good news has made investors "less worried about the outlook for the world and longer-term investors, who had been on the sidelines, are buying stocks," said shoji takata, an analyst at nomura.

Han jae-jin, a researcher at the Korea hyundai research institute, said a deal between China and the U.S. within this year would be positive for both sides, as the implementation of the agreement would help achieve a 'win-win' outcome and would have an important and positive impact on the south Korean economy, which relies heavily on exports.

'this positive development is expected to have a positive impact on market sentiment and growth confidence in China,' said Louis kuijs, head of Asian economic research at Oxford economics.

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Global financial markets and the business community generally believe that the agreement between China and the us on the text of the first phase of the economic and trade agreement sends a positive signal to the outside world, the market uncertainty risks are converging and the global market outlook is improving.

Of course, a sustained "rebound" in global markets will also depend on corporate earnings and a substantial improvement in the global economy.

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Thanks to the joint efforts of the economic and trade teams of the two countries, the two sides have reached an agreement on the text of the first stage of the economic and trade agreement based on the principles of equality and mutual respect, according to a statement released by the Chinese side on Tuesday.

The text includes the preamble, intellectual property rights, technology transfer, food and agricultural products, financial services, exchange rates and transparency, expanded trade, bilateral assessments and dispute settlement, and nine chapters of the final articles. At the same time, the two sides agreed that the us would fulfill its commitment to phase out tariffs on Chinese products and realize the transition from raising tariffs to lowering tariffs.