(Adds U.S. market open, byline; changes dateline; previous LONDON)
* U.S. stocks, MSCI's global equity gauge hit record highs
* STOXX 600 index in Europe hits record high
* Oil prices, Treasury yields move higher on trade prospects
By Herbert Lash
NEW YORK, Dec 16 (Reuters) - Global stock markets rallied on Monday, lifting Wall Street's three major indexes and a global gauge of equity performance to record highs after a preliminary U.S.-China trade deal pointed to stronger global growth, helping to drive up oil prices.
A pan-European index also hit a record high and the landslide election victory last week by British Prime Minister Boris Johnson pushed the benchmark FTSE 100 .FTSE to its biggest single-day gain in more than three years.
Chinese stocks rose to a six-week closing high as investors cheered the trade deal and growth in China's industrial and retail sectors beat expectations in November. gold held steady and the dollar eased as investors sought clarity on the deal's fine print.
"It's good news but we can't celebrate yet," said Mark Mobius, founding partner of Mobius Capital Partners and former executive chairman of the Templeton Emerging Markets Group.
"This agreement is dependent on the degree to which the Chinese comply. This conversation will continue as there's so many issues," Mobius said.
The "phase one" deal suspended a threatened round of U.S. tariffs on $156 billion of Chinese imports that was scheduled to take effect on Sunday. The United States also agreed to halve the tariff rate, to 7.5%, on $120 billion worth of Chinese goods.
MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.79% and the pan-European STOXX 600 index .STOXX rose 1.52% to hit record highs.
On Wall Street, the Dow Jones Industrial Average .DJI rose 164.32 points, or 0.58%, to 28,299.7. The S&P 500 .SPX gained 25.85 points, or 0.82%, to 3,194.65 and the Nasdaq Composite .IXIC added 93.23 points, or 1.07%, to 8,828.11.
Apple Inc AAPL.O , among the biggest companies to benefit from the deal, rose 1.87%. Chipmakers that make the components for its iPhones also gained.
On Sunday, U.S. Trade Representative Robert Lighthizer said the trade deal was "totally done" and that he expected it to nearly double U.S. exports to China over the next two years. much of 2019 investors have fretted over fears of a global recession, a good part driven by the prolonged U.S.-China trade dispute, said Candice Bangsund, a portfolio manager of global asset allocation at Fiera Capital in Montreal.
Equities are poised for further upside because of receding trade headwinds and reinflationary efforts by the Federal Reserve, the European Central Bank and the Bank of Japan, she said.
"From a 'what's priced-in standpoint' it's reduced uncertainty. What's not priced in, though, is the impact it's going to have on the global economy," Bangsund said.
Britain's FTSE 100 .FTSE surged 2.7% in the largest single-day gain since the immediate aftermath of the vote to leave the European Union in June 2016, when the blue-chip index rose 3.6% on a rally in stocks with global exposure.
Oil prices rose, supported by the announcement of an initial U.S.-China trade deal.
Brent crude oil futures LCOc1 were up 25 cents to $65.47 a barrel, while West Texas Intermediate crude CLc1 gained 11 cents to $60.18 a barrel.
Currency markets were mostly on hold.
The dollar index .DXY fell 0.13%, with the euro EUR= up 0.16% to $1.1137. The Japanese yen JPY= weakened 0.30% versus the greenback at 109.66 per dollar.
U.S. Treasury yields rose as traders took an optimistic view of a preliminary U.S.-China trade deal and its impact on growth.
Benchmark 10-year notes US10YT=RR last fell 19/32 in price to yield 1.8853%.