European stock markets mainly fell Thursday, after a mixed performance in Asia, as euphoria waned over US President Donald Trump's tax reform bill, dealers said.

Markets also faltered with many investors away for an extended festive break for Christmas and New Year holidays.

Global equities have nevertheless rallied this year, with Wall Street enjoying a record-breaking run, on expectations that Trump's promised tax cuts would add fire to the strong US economy.

Those gains increased over the past week as it became clear that months of bargaining would bear fruit, following the successful passage of Trump's tax reform bill through Congress.

"President Trump finally has a piece of legislation passed. There has already been a lot of optimism priced in," said Shane Chanel, equities and derivatives adviser at ASR Wealth Advisers.

"I believe this is a perfect example of buy the rumour sell the news. We may see a bit of profit-taking coming into the back end of the year."

In Europe on Thursday, Frankfurt and Paris stocks slipped 0.2 percent but London gained 0.1 percent.

British housebuilders Berkeley and Persimmon both fell by more than one percent after the government announced a ban on sales of new homes on a lucrative leasehold basis.

Wall Street stocks dipped overnight as the House of Representatives approved a sweeping US tax cut and sent the long-awaited measure to President Donald Trump's desk.

The vote in the lower congressional chamber was the last major hurdle before the controversial $1.5 trillion tax overhaul is signed into law by Trump. Wall Street has viewed the measure as Washington's most important priority since the 2016 US election.

In Asia, Tokyo ended 0.1 percent lower but Hong Kong rose 0.5 percent and Shanghai gained 0.4 percent higher as dealers welcomed a pledge by China's leaders to boost imports.

The dollar struggled despite expectations the across-the-board tax cuts would fan inflation and lead to higher interest rates.

"Forex traders remain nonplussed about the US dollar, which continues to struggle to gain traction," noted AxiTrader analyst Greg McKenna.

Dealers are now looking ahead to Friday's release of US personal consumption data, which could provide clues on the Fed's plans for monetary policy next year.

- Key figures around 1045 GMT -

London - FTSE 100: UP 0.1 percent at 7,531.84 points

Frankfurt - DAX 30: DOWN 0.2 percent at 13,044.70

Paris - CAC 40: DOWN 0.2 percent at 5,342.39

EURO STOXX 50: DOWN 0.3 percent at 3,540.75

Tokyo - Nikkei 225: DOWN 0.1 percent at 22,866.10 (close)

Hong Kong - Hang Seng: UP 0.5 percent at 29,367.06 (close)

Shanghai - Composite: UP 0.4 percent at 3,300.06 (close)

New York - DOW: DOWN 0.1 percent at 24,726.65 (close)

Euro/dollar: UP at $1.1885 from $1.1871 at 2200 GMT

Pound/dollar: UP at $1.3385 from $1.3376

Dollar/yen: UP at 113.44 yen from 113.40 yen

Oil - Brent North Sea: DOWN 26 cents at $64.30 per barrel

Oil - West Texas Intermediate: DOWN 14 cents at $57.95