European stocks have rallied strongly today after the US Senate passed a tax package delivering significant fiscal stimulus, which investors have been anticipating would give extra legs to the bull run in equity markets.
The tax overhaul delivered some relief in early European trading after benchmarks hit multi-week lows on Friday.
Strong gains in the US dollar helped Germany's dollar-exposed DAX shoot up from a two-month low, last up 1.1%.
The euro's strengthening has weighed on earnings expectations for stocks across the euro zone this quarter.
Bank stocks, seen as the biggest beneficiaries of tax cuts, led gains, up 0.9% on the day.
The pan-European STOXX 600 gained 0.7%, while euro zone blue chips jumped 0.8%, set for their best gains in five weeks.
Vehicle stocks, which also have large exposures to the US, shot higher with Fiat Chrysler leading Italy's FTSE MIB, up 3.2%.
