European Shares Seen Up On US Tax-cut Progress

European stocks look set to open notably higher on Monday after U.S. Senate Republicans narrowly approved a bill to overhaul the country’s tax system.

The House and Senate need to vote again on the final draft. With funding for the federal government set to expire on Friday, Republican leaders need to put together the votes for a deal on top-line spending levels for this fiscal year.

The dollar rose broadly against its rivals after President Donald Trump wrote on Twitter that he never asked former FBI Director James Comey to stop investigating Michael Flynn, the president’s former national security adviser.

Asian stocks recovered from early losses to trade mixed and gold dipped, while oil prices fell on data showing a rise in U.S. rig count last week.

Euro-area finance ministers will be meeting today in Brussels to discuss the future of the euro area, vote for a new president and debate Greece’s bailout review.

British Prime Minister Theresa May is due to meet European Commission chief Jean-Claude Juncker to lay out the proposals on divorce issues such as the financial settlement and the Irish border.

The U.S. Labor Department’s November jobs report is due out Friday, days before the Federal Reserve’s December monetary policy meeting Dec. 12-13.

U.S. stocks fell sharply before closing off their day’s lows on Friday after a report that Michael Flynn, Donald Trump’s former national security adviser, pleaded guilty to lying to federal agents about conversations with the Russian ambassador last December during the presidential transition.

The Dow and the S&P 500 slid about 0.2 percent each while the tech-heavy Nasdaq shed 0.4 percent.

European markets tumbled on Friday, with a delay in a vote on tax reform in the U.S. and disappointing manufacturing data from China weighing on markets.

The pan-European Stoxx Europe 600 index retreated 0.7 percent. The German DAX tumbled 1.3 percent, France’s CAC 40 index lost 1 percent and the U.K.’s FTSE declined 0.4 percent.

by RTT Staff Writer

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