European stocks closed at new record highs on Monday as optimism around restored trade flows between the US and China aided the outlook for global growth. The Eurozone's STOXX 50 added 0.6% to 5,711 and the STOXX 600 rose 0.2% to 577, both at historical peaks. Positive signals from US and Chinese officials raised expectations that the world's largest economies are due to remove some of the trade barriers placed against each other following the meeting by Presidents Trump and Xi Jinping on Thursday, supporting the outlook for corporate returns. Meanwhile, the ECB is due to hold its rates while the Fed is likely to cut rates this week. Porsche jumped 3% after posting a smaller operating loss than expected. Banks also rose sharply with Intesa Sanpaolo, UniCredit, and BBVA adding close to 2%, while Schneider advanced 2.1% on an upgrade from Morgan Stanley. Additionally, ASML, Prosus, and Infineon jumped between 3% and 1.5% as Mag7 earnings this week could support the tech sector.