Paris, France (AFP) — Progress by the United States and Mexico on rewriting the North American trade pact sent Wall Street to record highs on Monday.

Both the S&P 500 and the tech-heavy Nasdaq Composite forged all-time highs, while the Mexican peso and Canadian dollar jumped against the US unit.

President Donald Trump said the United States has reached a “really good deal” with Mexico on updating the North American Free Trade Agreement, or NAFTA.

“It’s a big day for trade. It’s a really good deal for both countries,” Trump said.

Meanwhile, Mexican President Enrique Peña Nieto said that a final deal with the United States and Canada is possible this week.

The United States and Mexico had been holding bilateral talks on updating the 1994 three-country trade pact, while Canada had taken a pause from the negotiations.

The Nasdaq Composite jumped above 8,000 points for the first time ever after Trump announced progress in the talks with Mexico.

Meanwhile, the peso rose about 1.5 per cent against the dollar, before paring gains. The Canadian dollar rose about 0.3 per cent against the greenback.

In Europe, trading was thin with London closed for a public holiday.

The bank holiday in London was “keeping trading in Europe pretty thin,” said London Capital Group analyst, Jasper Lawler.

Share prices in Frankfurt closed 1.2 per cent higher after a widely watched survey showed business confidence in the German economy bouncing back as US trade war fears ease.

The widely watched Ifo barometer of business confidence rose to its highest level since February as concerns about a trade war between the US and the EU were put on the back burner.

“Today’s Ifo index strongly suggests that the growth party will continue,” said ING economist Carsten Brzeski.

French stock prices rose 0.9 per cent.

In Asia, Tokyo ended 0.9 per cent higher, Hong Kong jumped more than two percent, Shanghai added 1.9 per cent and Singapore put on 0.7 per cent.

Seoul gained 0.3 per cent and Sydney added 0.4 per cent while there were also gains in Wellington, Taipei and Jakarta.

In forex trading, the euro climbed, but OANDA trader Stephen Innes said that the it could begin to face headwinds as a result of tensions between Italy’s populist government and the EU over Rome’s refusal to take in refugees rescued from the Mediterranean.

– Key figures around 1530 GMT –

New York – Dow Jones: UP 0.9 per cent at 26,011.94 points

New York – S&P 500: UP 0.7 per cent at 2,894.20

New York – Nasdaq: UP 0.7 per cent at 8,018.19

London – FTSE 100: Closed for holiday

Frankfurt – DAX 30: UP 1.2 per cent at 12,538.31 (close)

Paris – CAC 40: UP 0.9 per cent at 5,479.10 (close)

EURO STOXX 50: UP 0.9 per cent 3,457.78

Tokyo – Nikkei 225: UP 0.9 per cent at 22,799.64 (close)

Hong Kong – Hang Seng: UP 2.2 per cent at 28,271.27 (close)

Shanghai – Composite: UP 1.9 per cent at 2,780.90 (close)

Euro/dollar: UP at $1.1645 from $1.1623 at 2040 GMT Friday

Pound/dollar: UP at $1.2884 from $1.2847

Dollar/yen: DOWN at 111.00 yen from 111.21 yen

Oil – West Texas Intermediate: UP 11 cents at $68.83 per barrel

Oil – Brent Crude: UP 23 cents at $76.05 per barrel