European shares were trading at levels little changed from the open around midday Thursday, as investors mulled over the passage of the US tax reform Bill in the first major success for US President Trump.
US shares ended a touch lower following the news, while Asian shares were mixed as investors digest the sweeping tax changes the new Bill will bring.
By 1215 BST, the EUROSTOXX 600 was trading 0.07% higher while the EUROSTOXX 50 was broadly flat with a negative bias. The regional bourses were also at similar levels to the open. The German DAX, French CAC and Spanish IBEX were all within 0.05% of their opening levels.
Trump’s Tax Bill Win
The new US Tax Bill was passed by the US House by a vote of 224 – 201 and the US Senate passed it by 51 – 48 with no technical changes to the Bill. No Democrats backed the Tax reforms.
The new US tax Bill represents the first major overhaul of the US tax system in over 30 years.
“We are making America great again” US President Trump tweeted.
Under the new tax rules, corporation tax will be cut from 35% to 21% and critics point to the fact that this detail will be one of the biggest costs to the US treasury. Estimates suggest the new tax Bill will add $1.5 trillion to the US deficit.
However, it's anticipated many US business will benefit from the new US tax code, which will likely help boost the US stock market further during 2018.
European stock moves
While business and analysts investigate the full extent of the impact of the new US tax rules on their business, activity among European stocks was mixed.
Nokia shares were trading 2.07% higher at €3.95 Thursday, following news of a deal with Chinese tech firm Huawei. UK construction services firm Balfour Beatty shares, meanwhile, were 1.53% in the green at £286.00.
Stock fallers include:
- Deutsche Bank shares -1.56% at €16.38.
- Steinhoff shares -12.6% at €0.26.
- Commerzbank shares -1.33% at €12.62.