Investing.com - European markets rallied on Monday, as positive news on the Brexit front and the U.S. tax reform front improved sentiment around the globe.
The EURO STOXX 50 advanced 0.88%, France’s CAC 40 gained 0.79%, while Germany’s DAX 30 was up 1.02% by 03:30 a.m. ET (07:30 GMT).
Sentiment was boosted after the U.S. Senate approved a tax overhaul late Friday, marking President Donald Trump first major political victory.
The Trump administration has said its tax cuts will generate growth and spark inflation, which investors hope will prompt a faster pace of monetary tightening by the Federal Reserve.
Investors were also encouraged by recent news Brexit talks were moving in a positive direction. The European Union has given British Prime Minister Theresa May until Monday to propose a more comprehensive divorce offer.
Financial stocks were broadly lower, as French lenders Societe Generale (PA:SOGN) and BNP Paribas (PA:BNPP) jumped 1.69% and 2.08%, while Germany's Commerzbank (DE:CBKG) and Deutsche Bank (DE:DBKGn) surged 1.53% and 2.06%.
Among peripheral lenders, Italy's Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) rallied 1.54% and 1.60% respectively, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) advanced 1.25% and 1.38%.
Energy-related stocks added to gains, still supported by a decision by the world's major oil producers last week to extend production cuts until the end of 2018.
French oil and gas major Total SA (PA:TOTF) saw shares rise 0.35%, while Italy's ENI (MI:ENI) climbed 0.51% and Norwegian rival Statoil (OL:STL) advanced 0.42%.
In London, FTSE 100 gained 0.76%, as UK lenders tracked their European counterparts sharply higher.
Shares in Lloyds Banking (LON:LLOY) climbed 0.42% and the Royal Bank of Scotland (LON:RBS) advanced 1.15%, while HSBC Holdings (LON:HSBA) jumped 1.17% and Barclays (LON:BARC) surged 2.14%.
Ryanair Holdings PLC (LON:RYA) was also on the upside, with shares up 0.74% after the airliner reported that its airline traffic increased by 6% to 9.3 million customers in November, compared to the 8.8 million the previous year.
Meanwhile, mining stocks were mixed on the commodity-heavy index, as Glencore (LON:GLEN) gained 0.75% and BHP Billiton (LON:BLT) rallied 1.71%, while Randgold Resources (LON:RRS) and Fresnillo (LON:FRES) tumbled 1.31% and 2.29% respectively.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.86% climb, S&P 500 futures signaled a 0.50% gain, while the Nasdaq 100 futures indicated a 0.32% increase.