Major European logistics companies are trading sharply higher after the US and China agreed on temporary tariff cuts for 90 days.

Leading the pack are shipping companies A.P. Möller Maersk and Hapag-Lloyd, both of which are up more than 10 percent on the stock market.

Kühne+Nagel is also up 6.7 percent, while Denmark's DSV and Deutsche Post are rising by over 3 percent.

The companies are rising so strongly because they benefit from increased trade, as this means they have to handle more volumes. Lower tariffs mean just that: trade picks up and volumes rise.

The US and China are the world's two largest economies, so the agreement is of paramount importance for the global economy.