(Adds close of U.S. markets)
* 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, pushing 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 world growth, helping to lift oil prices.
The pan-European STOXX 600 index .STOXX also hit a record high and the landslide election victory last week by British Prime Minister Boris Johnson drove the benchmark FTSE 100 .FTSE to its biggest single-day gain in almost a year.
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. remained cautious ahead of signing the agreement after months of at-times testy negotiations.
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. Mobius has spent four decades scouring emerging markets for investments.
The "phase one" deal will double U.S. exports to China and has been "absolutely completed," Larry Kudlow, director of the National Economic Council, told Fox News Channel. deal suspended a threatened round of U.S. tariffs on $156 billion of Chinese exports 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 0.70% and the pan-European STOXX 600 index .STOXX rose 1.39 to hit record highs. three major U.S. stock indices posted record closing highs. The Dow Jones Industrial Average .DJI rose 100.51 points, or 0.36%, to 28,235.89. The S&P 500 .SPX gained 22.65 points, or 0.71%, to 3,191.45 and the Nasdaq Composite .IXIC added 79.35 points, or 0.91%, to 8,814.23. Inc AAPL.O , among the biggest companies to benefit from the deal, rose 1.71%. Chipmakers .SOX that make the components for its iPhones also gained, up 0.96%.
For much of 2019, investors have fretted over fears of a global recession, in 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 reflationary 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 2.25% in the largest single-day gain since late December 2018, while the mid-cap FTSE 250 .FTMC index jumped 1.9% to hit an all-time high. focused stocks benefited from the British election euphoria, with banking heavyweights Lloyds LLOY.L , Barclays BARC.L and RBS RBS.L jumping between 3.7% and 5.5%.
Oil prices edged higher on hopes energy demand will increase because of the U.S.-China trade deal, but prices remained below Friday's three-month highs. crude oil futures LCOc1 settled up 12 cents to $65.34 a barrel, while West Texas Intermediate crude CLc1 gained 14 cents to settle at $60.21 a barrel.
Caution over the future path of trade talks weighed on the dollar. dollar index .DXY fell 0.12%, with the euro EUR= up 0.21% to $1.1142. The Japanese yen JPY= weakened 0.24% versus the greenback at 109.60 per dollar.
U.S. Treasury yields rose as traders took an optimistic view of the preliminary U.S.-China trade deal and its impact on growth. 10-year notes US10YT=RR fell 16/32 in price to yield 1.8766%.
U.S. gold futures GCcv1 settled mostly unchanged at $1,480.50 an ounce. GRAPHIC-Global assets in 2019
http://tmsnrt.rs/2jvdmXl GRAPHIC-World FX rates in 2019
http://tmsnrt.rs/2egbfVh GRAPHIC-MSCI All Country Wolrd Index Market Cap
http://tmsnrt.rs/2EmTD6j
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