Stocks likely to rally amid clarity on trade, Brexit

US stocks breached records last week after two of the biggest storm clouds hanging over the market parted in an instant. The last couple of weeks of the year could see more record highs, even if those levels prove difficult to sustain.

On the same day that the US and China declared a ceasefire in the long-running trade war, UK Prime Minister Boris Johnson declared victory in the even longer-running Brexit saga.

"Conservative Party majority (Brexit resolution) and reports of Phase One US-China trade deal to resolve two main global macro tail risks," said strategists at brokerage Bank of America Global Research, in a note to clients.