European equities build momentum as traders wait for American tax bill

On Tuesday, European equities followed American as well as Asian markets higher because market participants waited for a highly- anticipated American tax reform bill that looks nearly certain to be approved this week.

The pan-European STOXX 600 edged up 0.2% hitting a five-week maximum, maintaining Monday's momentum. However, revenues turned to be muted, with euro zone shares as well as blue-chips rallying 0.1%.

In the UK, FTSE 100 soared 0.3%, underpinned by its weighting towards defensive and high dividend-paying equities that traders favor when they feel uncertainty.

Chipmaker Dialog Semiconductor appeared to be the leading stock mover, ascending 7.7% after Tsinghua lifted its stake in the company further to 9%.

Tsinghua Unigroup has been contributing to its stake since Dialog equities dipped in November following news that the power management chip maker might be deprived of its key client, Apple.

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