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European stock markets dropped for a second straight day on Wednesday, with some preholiday selling taking place as the U.S. made a huge leap forward in approving highly anticipated tax reform.
Stock-market indexes closed marginally lower on Wednesday, with the Dow and S&P 500 retreating from record levels for a second session, as congressional Republicans sent tax-cut legislation to President Donald Trump for his signature. The small declines by major indexes belied bullish market breadth, however. Exchange data showed advancers outnumbered decliners on the NYSE and Nasdaq.
Asian markets offered a muted reaction on Thursday to the passage of US tax cuts as benefits to company bottom lines were already baked into stock prices, while bonds were spooked by the blowout in government debt needed to fund the giveaways.
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