* U.S. stocks lower in afternoon trading
* European shares close at lowest in four weeks
* Long-dated U.S. Treasury yields at months-high peaks (Updates to late trading on Wall Street and Europe close)
By Stephanie Kelly
NEW YORK, Oct 25 (Reuters) - U.S. and European stock markets fell on Wednesday amid some concerns over corporate earnings and U.S. tax reform plans, a day before the European Central Bank was set to decide its next monetary policy move.
The MSCI world equity index .MIWD00000PUS , which tracks shares in 47 countries, fell 0.35 percent.
Republicans have struggled to deliver on a number of President Trump's promises in Congress and financial investors worry tax cuts promised by the president to support growth will see a similar fate.
Traders cited a Wall Street Journal report suggesting, in contrast to comments by President Donald Trump, that Republicans were still considering limiting the deductibility of 401(k) plan retirement contributions, as one reason for the downturn in U.S. equities. The plans, for decades, have helped American workers save for retirement.
"The 401k issue is causing some confusion because it is directly contradicting the President and the market doesn't like confusion," said Michael Antonelli, managing director of institutional sales trading at Robert W. Baird in Milwaukee.
Disappointing earnings from AT&T (NYSE:T) T.N sent shares in the United States' second largest wireless carrier down 3.6 percent, pulling down other telecom stocks Verizon VZ.N and CenturyLink (NYSE:CTL) CTL.N . Dow Jones Industrial Average .DJI fell 109.85 points, or 0.47 percent, to 23,331.91, the S&P 500 .SPX lost 12.77 points, or 0.50 percent, to 2,556.36 and the Nasdaq Composite .IXIC dropped 38.76 points, or 0.59 percent, to 6,559.67.
European shares closed down, with a mixed batch of company results sparking profit-taking a day before the ECB's policy meeting. The central bank is expected to signal a reduction in its bond-buying scheme, gradually withdrawing post-crisis stimulus. pan-European STOXX 600 .STOXX closed at its lowest level in nearly four weeks, down 0.6 percent. The FTSEurofirst 300 index .FTEU3 lost 0.61 percent.
BOND YIELDS
U.S. long-dated Treasury yields trimmed gains Wednesday afternoon, but remained at multi-month highs after a strong U.S. durable goods report. upcoming announcement of President Donald Trump's nominee to head the Federal Reserve has kept investors on edge over the direction monetary policy could take depending on whom he nominates. 10-year note yields US10YT=RR last fell 10/32 in price to yield 2.4426 percent, from 2.406 percent late on Tuesday.
The 30-year bond yield, US30YT=RR last lost 21/32 in price to yield 2.9559 percent, from 2.923 percent late on Tuesday.
The U.S. dollar dipped against of basket of key world currencies as the wait continued for President Trump to name the next head of the U.S. central bank. dollar index .DXY fell 0.06 percent, with the euro EUR= up 0.4 percent to $1.1806.
The Japanese yen strengthened 0.11 percent versus the greenback at 113.79 per dollar, while Sterling GBP= was last trading at $1.3248, up 0.87 percent on the day.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 0.02 percent higher, while Japan's Nikkei .N225 lost 0.45 percent.
U.S. crude CLcv1 fell 0.67 percent to $52.12 per barrel and Brent LCOcv1 was last at $58.27, down 0.1 percent on the day.
Spot gold XAU= added 0.1 percent to $1,276.81 an ounce.
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http://reut.rs/1WAiOSC Global currencies vs. dollar
http://tmsnrt.rs/2egbfVh Global bonds dashboard
http://tmsnrt.rs/2fPTds0 Emerging markets in 2017
http://tmsnrt.rs/2ihRugV
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