European stock markets rise on EU-China trade agreement

European stock markets closed higher, driven by an agreement between the European Union and China regarding hybrid vehicle import quotas and a decline in bond yields. The Stoxx Europe 600 index rose 0.65% to 635.65 points, while the EuroStoxx 50 increased by 0.45%.

Major national indices also saw gains: Germany's DAX 40 rose 0.76%, the UK's FTSE 100 climbed 0.99%, France's CAC 40 grew 0.38%, and Italy's FTSE MIB increased 0.58%. In Germany, defense stocks performed well, with Rheinmetall gaining 2.5%.

In the automotive sector, Volkswagen reported a 14.3% year-on-year decrease in global deliveries for the third quarter, falling to 1.89 million vehicles. However, its shares rose 0.6% as the EU-China hybrid vehicle quota agreement reduced trade war concerns.

Investors are now shifting focus toward the upcoming corporate earnings season, specifically looking toward major US banks and European companies for economic signals.