Europe stocks open mixed amid US tax cut optimism

Europe stock markets opened mixed during Tuesday morning trade, on the back of a record-setting session on Wall Street amid heightened expectations U.S. lawmakers could pass sweeping tax legislation.

The pan-European Stoxx 600 was little changed shortly after the opening bell, with sectors and major bourses pointing in opposite directions.

In recent weeks, global markets have fluctuated in response to mixed expectations about President Donald Trump’s ability to push through a signature tax overhaul. On Monday, Wall Street surged to fresh record highs as the Republicans’ tax bill appeared to move closer to passage through Congress.

The proposed U.S. tax legislation would slash corporate tax rates to 21 percent, down from 35 percent, with investors betting this will boost company profits and trigger share buybacks.

On the data front, Germany will see the release of IFO business survey at around 9 a.m. London time. The IFO business climate surged to an all-time high of 117.5 in November.

In commodities, oil prices edged higher on Tuesday, supported by an ongoing North Sea pipeline outage and prolonged OPEC-led production cuts. However, soaring output in the U.S. appeared to limit gains. Brent crude traded at around $63.53 a barrel, up 0.19 percent, while U.S. crude was seen at $57.32, up 0.28 percent.

Source: CNBC