Stock markets rose in Europe and Asia on Monday, July 28, after the European Union and United States agreed on a deal to prevent a potentially damaging trade war.

News of the deal, announced by Donald Trump and European Commission head Ursula von der Leyen followed a series of US trade agreements last week, including with Japan.

It comes ahead of a new round of China-US talks.

Investors were also gearing up for a busy week of data, central bank decisions and earnings from some of the world's biggest companies.

Trump and von der Leyen announced at his golf resort in Scotland that a baseline tariff of 15 percent would be levied on EU exports to the United States.

"We've reached a deal. It's a good deal for everybody. This is probably the biggest deal ever reached in any capacity," Trump said.

Brussels also agreed to purchase "$750 billion worth of energy" from the United States, as well as make $600 billion in additional investments.

"It will bring stability. It will bring predictability. That's very important for our businesses on both sides of the Atlantic." von der Leyen said. 

Equities built on their recent rally, fanned by relief that countries were reaching deals with Washington.

Paris rose one percent, with Frankfurt and London also tracking gains in Hong Kong, Shanghai, Sydney, Seoul, Wellington, Taipei and Jakarta.

Tokyo fell for a second day, having soared about five per cent on Wednesday and Thursday in reaction to Japan's US deal. Singapore, Manila and Mumbai were also lower.

The broad gains came after another record day for the S&P 500 and Nasdaq on Wall Street.