Investing.com - European markets were mixed on Thursday, as sentiment mildly recovered amid hopes for U.S. tax reform plans and an upcoming rate hike, while political turmoil in Germany still weighed.
The EURO STOXX 50 inched 0.03% higher, France’s CAC 40 dipped 0.03%, while Germany’s DAX 30 was up 0.14% by 03:40 a.m. ET (07:40 GMT).
Market sentiment improved following reports on Wednesday that U.S. President Donald Trump proposed the biggest U.S. tax overhaul in three decades.
The proposal still faces an uphill battle in the U.S. Congress, with the Republican Party divided over it and Democrats hostile.
Meanwhile political uncertainty in Germany remained, but Chancellor Angela Merkel seemed closer to forming a government after Wolfgang Schaeuble decided to become president of the parliament, allowing another party to take the Finance Ministry.
Financial stocks were broadly higher, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) rallied 1.32% and 1.40%, while Germany's Commerzbank (DE:CBKG) and Deutsche Bank (DE:DBKGn) jumped 1.30% and 1.63%.
Among peripheral lenders, Italy's Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) advanced 0.29% and 0.61% respectively, while Spanish banks Banco Santander (MC:SAN) and BBVA (MC:BBVA) gained 0.38% and 0.91%.
Elsewhere, Siemens AG (DE:SIEGn) and Alstom (PA:ALSO) remained supported, with shares up 0.35% and 1.64% after the two companies announced late Tuesday that they agreed to merge their rail operations.
On the downside, Linde AG (DE:LING) shares slid 0.36% after Praxair (NYSE:PX) shareholders voted in favour of merger with the German chemical company.
The approval completes a key milestone in combining two major companies in the global industrial gas industry under a new holding company named “Linde plc.”
In London, FTSE 100 slipped 0.11%, as local investors remained cautious ahead of a speech by Bank of England Governor Mark Carney scheduled at 08:15 am GMT.
Carnival (LON:CCL) Plc was one of the worst performers on the index, with shares down 2.83%.
Mining stocks were also lower on the commodity-heavy index. Shares in Glencore (LON:GLEN) Rio Tinto (LON:RIO) dropped 0.98% and Glencore lost 1.05%, while rival company BHP Billiton (LON:BLT) declined 1.41%.
Meanwhile, U.K. lenders tracked their European counterparts higher. The Royal Bank of Scotland (LON:RBS) inched up 0.07% and HSBC Holdings (LON:HSBA) rose 0.33%, while Lloyds Banking (LON:LLOY) climbed 0.77% and Barclays (LON:BARC) rallied 1.84%.
In the U.S., equity markets pointed to a steady to lower open. The Dow Jones Industrial Average futures pointed to a 0.08% loss, S&P 500 futures signaled a 0.04% dip, while the Nasdaq 100 futures indicated a 0.03% downtick.