European markets are expected to start off the first trading day of the week sharply higher, as investors digest news that the U.S. Senate narrowly passed a major tax bill over the weekend.

On the bourses front, the U.K.’s FTSE 100 is expected to open 59 points higher at 7,359, while the German DAX is set to skyrocket at the market open, up 176 points at 13,037 and the French CAC up 57 points at 5,372, according to IG.

Looking to market performance overseas, Asia markets traded relatively mixed, while U.S. futures rose sharply, with the Dow Jones industrial average set to start more than 200 points higher on Monday.

The move in U.S. futures is credited to the news linked back to Saturday morning, when Senate Republicans managed to narrowly pass a bill, to overhaul the country’s tax system. The final vote came out as 51-49 in favor. The GOP still, however, needs to overcome obstacles in order for the Senate and the House to craft a joint bill, with Republicans hoping a deal will be achieved by Christmas.

Switching back to Europe, the topic of Brexit will reemerge Monday to shake up market sentiment. This week, U.K. and European Union negotiators are expected to meet and break the deadlock surrounding Brexit talks.

The EU has given British Prime Minister Theresa May until Monday, to propose a more comprehensive offer when it comes to certain Brexit divorce issues. According to Reuters, EU officials and diplomats have said that they have become more optimistic that a deal could be struck on Monday, yet remained vigilant of possible problems that could arise.

While oil price rose on the back of the OPEC deal last week, prices were trading in the red Monday, following news that U.S. shale drillers had added more rigs in the previous week.

In stocks news, Lonmin and GW Pharmaceuticals are all set to publish new financial figures.

Prior to the market open, Ryanair reported that its airline traffic for November grew 6 percent to 9.3 million customers, compared to the 8.8 million seen in November 2016.

On the data front, consumer confidence data and the unemployment change are both due out for Spain on Monday, while construction PMI (purchasing managers’ index) data are due out for the U.K.

—CNBC’s Jacob Pramuk contributed to this report