The agreement was announced as the Democratic-controlled U.S. House of Representatives Judiciary Committee voted to charge Trump with abuse of power and obstruction during an impeachment inquiry.
MSCI's gauge of global equities rose 0.32%, while the pan-European STOXX 600 index gained 1.25%, boosted by hopes of an orderly Brexit after a landslide victory for UK Prime Minister Boris Johnson in Thursday's elections.
But stocks on Wall Street pared initial gains on the news of a preliminary U.S.-China trade deal. Given the heated nature of the trade war between the world's two largest economies, investors were slow to fully embrace the news, as both sides have engaged in brinkmanship.
Investors are weary of the bantering rhetoric, while on the margin Johnson's victory is bigger news than what could be viewed as trade positioning, said Jack Ablin, chief investment officer at Cresset Capital Management. "Investors at this point are tired of the talk and are looking for a hand shake," he said.
The back and forth in trade talks between China and the United States is emblematic of a great power struggle, said James Clunie, manager of the Jupiter Absolute Return Fund.
"If there are two great countries locked in a strategic war, which is what a great power struggle is, then that is not going away, that is probably with us for a long time," Clunie said.
MSCI's gauge of global stock performance and the three main U.S. equity indexes hit record highs.
The Dow Jones Industrial Average rose 5.3 points, or 0.02%, to 28,137.35. The S&P 500 gained 1.05 points, or 0.03%, to 3,169.62 and the Nasdaq Composite added 21.92 points, or 0.25%, to 8,739.24.
Earlier in Asia, Japan's Nikkei climbed 2.5% to a 14-month high and Shanghai blue chips advanced 2%.
Sterling gained following Johnson's win of a commanding majority in Britain's Parliament, giving him the power to deliver a clear exist from the European Union, though trade talks are set to drag on for months, if not years.
UK shares exposed to Britain's economy surged, with the benchmark FTSE 100 index gaining more than 2% at one point as the rally offset the drag from a jump in sterling.
The pound rose to a 19-month high against the U.S. dollar and shares in Europe rose to near all-time highs as investors cheered the likelihood of an orderly Brexit. Sterling last traded at $1.3335, up 1.31%.
The dollar fell against a basket of currencies as the prospect of a China-U.S. trade deal and the British election results sapped safe-haven demand for the greenback. The dollar index fell 0.21%, with the euro down 0.09% to $1.1118. The Japanese yen weakened 0.03% versus the greenback at 109.36 per dollar.
Oil rose to its highest level in nearly three months as investors cheered the progress in resolving the U.S.-China trade dispute and the decisive election result in Britain. Brent crude, the global benchmark, rose $1.02 to settle at $65.22 a barrel. U.S. West Texas Intermediate (WTI) settle up 89 cents at $60.07 a barrel.
During the session, both contracts jumped to their highest levels since Sept. 17, with WTI topping $60 a barrel.
Gold prices were little changed as risk appetite was boosted from the progress in the U.S.-China trade talks, though investors remained cautious. U.S. gold futures settled up 0.6% at $1,481.20 an ounce.
U.S. benchmark 10-year Treasury notes rose 21/32 in price to yield 1.8261%,
(Reporting by Herbert Lash Editing by Leslie Adler) ((email@example.com; 1-646-223-6019; Reuters Messaging: firstname.lastname@example.org))