EUROPE MARKETS: DAX Ends Sharply Higher As U.S. Tax Progress Revs Up European Stocks
Bank stocks are winners Monday on the back of the U.S. Senate's vote
European stocks closed with strong gains Monday, with German blue-chips surging by the most in a month, after lawmakers in Washington moved closer to getting a major package of U.S. tax cuts and reforms signed into law.
What markets are doing: The Stoxx Europe 600 advanced 0.9% to end at 387.47, erasing last week's drop of 0.7% (http://www.marketwatch.com/story/european-stocks-dragged-lower-shaken-by-washingtons-tax-reform-delay-2017-12-01).
Germany's DAX 30 index leapt 1.5% to finish at 13,058.55, nabbing its biggest daily rise since Nov. 1, according to FactSet data. France's CAC 40 put on 1.4% to close at 5,389.29, while the U.K.'s FTSE 100 (http://www.marketwatch.com/story/ftse-100-leaps-propelled-by-progress-on-us-tax-cuts-2017-12-04) bulked up 0.5% to end at 7,338.97.
The euro (http://www.marketwatch.com/story/dollar-pushes-higher-as-investors-focus-on-tax-plan-progress-2017-12-04) traded at $1.1857, down from $1.1896 late Friday in New York.
What's moving markets: European stocks kicked higher along with U.S. equities (http://www.marketwatch.com/story/dow-futures-soar-200-points-as-markets-get-ready-to-rally-on-tax-plan-progress-2017-12-04) after the Senate passed a Republican-sponsored proposal for tax reform almost entirely along party lines (http://www.marketwatch.com/story/senate-passes-tax-bill-advancing-top-republican-priority-2017-12-02) on Saturday.
Read:Trump celebrates tax-bill victory as opponents vent their fury via #TaxScamBill (http://www.marketwatch.com/story/trump-celebrates-tax-bill-victory-as-opponents-vent-their-fury-via-taxscambill-2017-12-02)
The House and Senate now must agree on a single tax bill before it can be sent to President Donald Trump to sign into law. Trump and his fellow Republicans have been promising to deliver cuts in corporate and individual taxes.
Meanwhile, there were reports of progress in Brexit talks over the weekend. But other reports said U.K. Prime Minister Theresa May and European Commission President Jean-Claude Juncker had not yet reached an agreement (http://www.marketwatch.com/story/british-pound-volatile-after-reports-of-no-brexit-deal-monday-2017-12-04) on Britain's planned departure from the European Union.
Stock movers: Bank stocks were winners Monday following the Senate's progress over the weekend. The Stoxx Europe 600 Bank Index bounced up 1.2%. There, shares of Germany's Deutsche Bank AG (DBK.XE) rose 2.3% for one of the DAX's biggest gains. Spain's Banco Santander SA (SAN) advanced 1.3%, U.K.-based Barclays PLC (BCS) (BCS) bulked up 2.6% and France's Société Générale SA (GLE.FR) tacked on 2.4%.
Shares in Dialog Semiconductor PLC (DLG.XE) dived 24% after the company acknowledged it eventually could lose (http://www.marketwatch.com/story/dialog-dives-14-after-saying-it-could-lose-some-apple-business-2017-12-04) some of Apple Inc.'s (AAPL) business.
(END) Dow Jones Newswires
December 04, 2017 12:57 ET (17:57 GMT)