European stocks closed lower on Tuesday as traders weighed up rising optimism that U.S. tax cuts will win passage this week against a disappointing reading on German business sentiment.

U.S. stock-market indexes closed slightly lower Tuesday as the House of Representatives, as expected, passed a bill that would deliver sweeping corporate tax cuts. The process hit a procedural snag after U.S. markets closed, however, which will force the House to vote again on the package Wednesday.

Asian stocks were mixed on Wednesday after US benchmarks dipped, with investors awaiting the final votes on US tax-cut legislation. Bond yields climbed amid focus on the outlook for increased supply in 2018, with less central bank buying. Japanese equity benchmarks saw small gains, while those in Seoul and Sydney were flat.