European stock markets turn lower on Trump tax doubts

LONDON: Europe's main stock markets dipped Wednesday on scepticism over US President Donald Trump's tax plans, dealers said.

Sentiment was subdued despite a record close on Wall Street, as investors digested mixed reactions to Apple's latest iPhone product launches.

"European markets are trading lower as traders are sceptical about the Trump tax reforms," said analyst Naeem Aslam at trading firm ThinkMarkets.

"Steven Mnuchin, treasury secretary assured markets yesterday that it is still highly likely that some parts of the tax reforms may take place this year."

Trump hit the road to sell reform of America's "self-destructive" tax code on Wednesday, a major campaign pledge that remains short on detail and a long way from becoming law.

The president visited Springfield, Missouri, hoping to pull voters and lawmakers behind what described as a "once in a generation" opportunity.

Advocating a 15 percent corporate tax rate, and a slew of other reforms, Trump insisted  "our self-destructive tax code cost millions of jobs, trillions of dollars, and billions of hours spent on compliance and paper work."

He has argued that ambitious reform of the tax code is needed to juice the economy further, and is counting on the Republican-controlled Congress to make that ambition reality.

"It appears there is still a lack of compromise between lawmakers about how to position tax cuts without adding to the budget deficit and to the debt burden," cautioned Rabobank analyst Jane Foley.

"Trump has indicated that he would like to engage members of the Democrat party to support his bid to revise tax policies.

"However, this would clearly water down the objectives of some Republican Party members."

Across in Asia on Wednesday, investors eased off the pedal while the dollar held steady.

- iPhone X price worries -

Apple suppliers were mixed after the US tech titan unveiled its long-awaited iPhone X and two other models.

Apple stock had ended lower in New York overnight as investors appeared somewhat underwhelmed.

"Although the new iPhone is seen as the future of the smartphone... its price tag will certainly be a drag on its accessibility to a large pallet of consumers, especially when it comes to the biggest growth potential markets such as emerging Asia," said London Capital Group analyst Ipek Ozkardeskaya.

The new iPhone X will retail at a hefty $999 in the United States, and will be available from November 3 in more than 50 markets.

Global markets had mostly climbed Tuesday on relief that Hurricane Irma did not hammer Florida as badly as feared, and on easing North Korea concerns.

However, Pyongyang attracted renewed attention when it vowed Wednesday to accelerate its weapons drive after "evil" UN Security Council sanctions.

- Key figures around 1030 GMT -

London - FTSE 100: DOWN 0.5 percent at 7,363.10 points

Frankfurt - DAX 30: DOWN 0.1 percent at 12,517

Paris - CAC 40: DOWN 0.1 percent at 5,204.50

EURO STOXX 50: DOWN 0.1 percent at 3,510.60

Tokyo - Nikkei 225: UP 0.5 percent at 19,865.82 (close)

Hong Kong - Hang Seng: DOWN 0.3 percent at 27,894.08 (close)

Shanghai - Composite: UP 0.1 percent at 3,384.15 (close)

New York - DOW: UP 0.3 percent at 22,118.86 (close)

Euro/dollar: UP at $1.1980 from $1.1964 at 2100 GMT

Dollar/yen: DOWN at 110.06 yen from 110.18 yen

Pound/dollar: DOWN at $1.3278 from $1.3280

Oil - Brent North Sea: UP 35 cents at $54.62 per barrel

Oil - West Texas Intermediate: UP 50 cents at $48.73