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European Shares Rally After US Senate Passes Tax Bill

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European stocks rallied on Monday as the U.S. Senate eventually approved a bill to overhaul the tax system and investors pinned hopes for progress in Britain's Brexit talks.

The U.S. dollar advanced against its major counterparts after the Senate voted 51 to 49 in favor of the bill known as the Tax Cuts and Jobs Act, taking a step closer to get the legislation passed by Christmas.

The pan-European Stoxx Europe 600 index was up 0.7 percent at 386.78 in late opening deals after declining 0.7 percent on Friday.

The German DAX was rallying 1.2 percent, France's CAC 40 index was rising 0.9 percent and the U.K.'s FTSE 100 was moving up 0.8 percent.

Automakers Volkswagen, BMW, Daimler, Peugeot and Renault climbed between 1 percent and 1.5 percent on hopes that large Republican-backed tax cuts will deliver a modest boost to the U.S. economy in the next two years.

Mining giant Rio Tinto advanced 1.2 percent after appointing Simon Thompson as its new chairman.

Airbus shares rallied 3.2 percent. The aerospace giant estimates that it can deliver more than 700 aircraft to customers in 2017.

Denmark's insurer Tryg jumped 3.8 percent after it agreed to buy unlisted competitor Alka Forsikring for $1.31 billion.

Sanofi was little changed. The French pharmaceuticals giant said no deaths had been reported in the Philippines as a result of the P3.4 billion dengue vaccination program that has been suspended by the government.

Dialog Semiconductor shares fell as much as 16 percent. The German firm confirmed that it continues to supply Apple Inc. with customized power management integrated circuits across a range of platforms without material change to its ongoing business relationship.

by RTT Staff Writer

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