European stocks rose for the first time in four session on Monday, with banks leading the charge north on hopes the highly anticipated tax reform in the U.S. will get passed this week and provide a boon for the financial sector.
U.S. stocks closed higher on Monday, with major indexes ending at records on growing confidence congressional Republicans will succeed in passing tax-cut legislation as early as this week. The day's gains were broad, with eight of the 11 primary S&P 500 sectors ending higher on the day. Financials, which are seen as the biggest beneficiaries of the tax legislation, were among the biggest gainers of the day, up 0.7%. Separately, energy shares rose 0.8% while material stocks were up 1.5%.
Most Asia-Pacific stocks traded higher Tuesday as changes to the U.S. tax code inched closer to completion, helping send Australia's benchmark to 10-year highs. Indexes in Japan and South Korea, meanwhile, steadied after giving up early gains.