Stock markets usher in New Year with big gains

Global stock markets powered ahead Thursday as investors welcomed 2020 with a raft of strong gains after China's central bank announced fresh stimulus, dealers said.

Asia kicked off the New Year on the front foot, with most rallying out of the blocks Thursday on lingering trade optimism and the stimulus news.

Europe also shone as investors remain upbeat about the global outlook after Washington and Beijing eventually reached a trade agreement to ease tensions between the two.

Brexit uncertainty has meanwhile been removed with Britain set to leave the European Union on January 31.

"European equities have made a bright start to the New Year with sizable rallies of more than one per cent," said XTB analyst David Cheetham.

"2019 was a good year on the whole for stock markets and they seem to be wasting little time in attempting to push higher again with the bourses following the lead of their Asian peers.

"Expectations that a 'Phase One' trade deal between the US and China will be signed in less than two weeks have boosted sentiment but the main driving force appears to be the announcement of a further easing of monetary policy from China's central bank."