Top 5 Things to Know in the Market on Monday –

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5 key factors for the markets on Monday5 key factors for the markets on Monday – Here are the top five things you need to know in financial markets on Monday, December 4:

1. Senate Republicans pass tax reform

Over the weekend, U.S. Senate Republicans pushed through a to move the legislation closer to approval by the end of the year. Early Saturday morning, the Senate passed a $1.4 trillion package of tax cuts which they expect to be paid for through economic growth. Independent studies have suggested that it will actually increase the federal deficit by around $1 trillion over the next 10 years, even after factoring in the growth calculations.

The tax bill includes a hefty cut to the U.S. corporation tax, bringing it down from 35% to 20%. It also includes sweeping changes to individual tax rates which President Donald Trump claims will make people “very, very happy”, although detractors proclaim that only the wealthiest will benefit from the reform.

House and Senate lawmakers have said they’ll begin working Monday on legislation in order to bring the two separate proposals together into that Trump could sign into law.

2. U.S. stocks celebrate U.S. tax accord

as traders applauded the agreement to cut corporate taxes. At 6:05AM ET (11:05GMT), the blue-chip gained 209 points, or 0.86%, rose 15 points, or 0.58%, while the traded up 28 points, or 0.43%.

The bullish sentiment spread across the continent with . The benchmark and Germany’s were both up around 1%.

Earlier, Asian shares, however, showed mixed trade with both China’s and Japan’s closing in the red.

3. Dollar moves higher on speculation tax reform will spur rate hikes

The against a basket of the other major currencies on Monday after the U.S. Senate passed a tax bill at the weekend, boosting expectations for a faster pace of rate hikes from the Federal Reserve.

At 6:06AM ET (11:06GMT), the , which measures the greenback’s strength against a trade-weighted basket of six major currencies, gained 0.44% at 93.22.

The greenback was boosted by expectations that tax cuts for corporations will stimulate the U.S. economy, and also drive Treasury yields higher, as the government becomes more dependent on debt due to reduced tax income.

In a light day for economic data, market participants will keep an eye on October out at 10:00AM ET (15:00GMT).

4. Oil drops on increased U.S. shale production.

following data that showed U.S. shale drillers added more rigs.

According to data from Baker Hughes released late Friday, drillers stateside added two oil rigs in the week to December 1, bringing the total count up to , highest since September

At 6:06AM ET (11:06GMT), fell 0.99% to $57.78, while traded down 0.69% to $63.29.

Prices still remained close to two-and-a-half year highs thanks to the extension of output cuts agreed last week by OPEC and other producers.

5. UK and EU set for talks

British negotiators were locked in last-minute talks with their European Union and Irish counterparts on Monday, trying to put together a Brexit deal ahead of .

UK Prime Minister Theresa May hopes that her talks with European Commission President Jean-Claude Juncker and his Brexit negotiator, Michel Barnier, due to start at 7:15AM ET (12:15 GMT), can persuade her 27 fellow EU leaders that “sufficient progress” has been made on divorce terms for them to agree next week to open talks on their future trade relationship.

EU leaders are scheduled to hold a summit on December 14 and 15.