LONDON - Global shares rose on Wednesday after House Republicans advanced US President Donald Trump's tax cut plans, which also supported the dollar and helped Treasury yields regain some lost ground.
The Republican-controlled US House of Representatives late on Tuesday narrowly passed Trump's $4.5 trillion tax-cut plan, sending the budget resolution to the Senate, where Republicans are expected to take it up.
"It's mainly good for corporate US," said Lars Skovgaard, senior investment strategist at Danske Bank.
"There's expected to be less regulation and tax cuts. I would expect it to happen and then it will be positive for markets if they do so."
Sentiment also improved after reports that the US and Ukraine agreed terms on a draft minerals deal.
US stock futures rebounded after a mixed session on Wall Street, with Nasdaq futures rising 0.8 percent, while S&P 500 futures gained 0.5 percent.
European shares rose for a second day, with the pan-continental STOXX 600 up 0.7 percent and blue-chip indexes in Frankfurt, Paris and London rising between 0.7 percent and 1.1 percent.
"(The plan) moved through just a little bit quicker than people were expecting," said Tony Sycamore, a market analyst at IG.
US Treasury yields rose slightly as investors anticipate more debt issuance ahead, with the benchmark 10-year yield up 1.5 basis points to 4.311 percent, having fallen almost 10 bps on Tuesday.
The two-year yield, which is sensitive to changes in Federal Reserve rate expectations, similarly rose about 2 bps to 4.112 percent.
Yields had fallen to their lowest in months in the previous session as traders ramped up bets of more Fed rate cuts this year on growing concerns over the outlook for the world's largest economy.
Data on Tuesday showed US consumer confidence deteriorated at its sharpest pace in 3-1/2 years in February - the latest in a string of surveys suggesting that businesses and consumers were becoming increasingly rattled by the Trump administration's policies.
Fed funds futures now point to 55 bps of easing priced in by year-end, implying at least two quarter-point cuts, up from about 40 bps a week ago.
Meanwhile, US copper prices surged more than 4 percent after Trump on Tuesday ordered a probe into potential new tariffs on copper imports.
In currency markets, the dollar regained some ground after falling to its lowest since December 10 earlier this week.
The dollar index, which measures the currency against six peers, was up 0.2 percent.
Against the yen, it traded 0.2 percent higher at 149.27, thanks to the rebound in US Treasury yields.
The euro eased 0.1 percent to $1.0499, but was not far from a one-month high. Sterling was similarly near a two-month top and last bought at $1.2656.
Brent futures were up 0.3 percent to $73.22 a barrel having fallen more than 2 percent in the previous session, while US West Texas Intermediate (WTI) crude rose 0.4 percent to $69.19 per barrel, reversing some of Tuesday's 2.5 percent slump.
Gold was little changed at $2,915 an ounce.
Nvidia earning awaited
Artificial intelligence poster child Nvidia reports its quarterly earnings later on Wednesday, which could offer clarity on demand and justify the sector's lofty valuations.
Investor skepticism has grown over the billions that US tech firms have channeled into AI infrastructure due to slow payoffs and breakthroughs at China's DeepSeek.
"Any signs of weakness in Nvidia's report could have outsized effects on investor sentiment towards AI stocks as a whole," said Saxo's global head of investment strategy Jacob Falkencrone.
"This earnings report isn't just about Nvidia ... it's about whether the AI revolution can maintain its breakneck pace."
Some of Europe's most popular AI-linked stocks tumbled this week after an analyst note flagged a possible slowdown by Microsoft on data center leasing, knocking sentiment in the sector.
An index of "Magnificent Seven" stocks, which includes Nvidia, fell 2.5 percent on Tuesday to its lowest since November 27.
