Stocks, dollar jump as House advances Trump's tax cut plans

LONDON, Feb 26 (Reuters): Global shares and the dollar rose on Wednesday after House Republicans advanced U.S. President Donald Trump's tax cut plans, while Treasury yields nudged higher after the previous day's sharp fall.

The Republican-controlled U.S. 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 U.S.," 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 U.S. and Ukraine agreed terms of a draft minerals deal.

U.S. stock futures rebounded after a mixed session on Wall Street, with Nasdaq futures rising 0.7 per cent, while S&P 500 futures gained 0.5 per cent.

European shares rose for a second day, with the pan-continental STOXX 600 up 1 per cent to a new record and blue-chip indexes in Frankfurt, Paris and London rising between 0.7 per cent and 1.7 per cent.

"(The plan) moved through just a little bit quicker than people were expecting," said Tony Sycamore, a market analyst at IG.

U.S. Treasury yields rose slightly as investors anticipate more debt issuance ahead, with the benchmark 10-year yield up 1 basis point at 4.306 per cent, having fallen almost 10 bps on Tuesday.