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New York - European stocks slipped on Thursday, pressured by Greece's worsening financial predicament, and euro zone government borrowing costs hit new lows.
US stocks were slightly lower, despite another flurry of better-than-expected profit reports, including ones from Netflix and Goldman Sachs.
German government bond yields fell to historic lows after the Financial Times reported that the International Monetary Fund rebuffed an informal request by Greek officials to delay loan repayments.
Greek Prime Minister Alexis Tsipras told Reuters on Thursday he was "firmly optimistic" his government would reach an agreement with foreign creditors.
German 10-year note yields, a benchmark for European government borrowing costs, fell to a low of 0.072%.
The widening rift between Greece and its creditors over a deal that would unlock funds for Athens and prevent a default hit European stocks. Credit rating agency Standard & Poor's downgraded Greece late on Wednesday, and the country's short-term bond yields soared to 27%.
The EuroFirst300 index of Europe's leading 300 shares was down 0.84% at 1 638.
Treasuries yields were higher, with prices under pressure after the Philadelphia Federal Reserve's survey of economic activity came in reasonably strong, and Fed Vice Chairperson Stanley Fischer told CNBC that US inflation is headed toward the Fed's target.
Global stock markets earlier touched a record high thanks to renewed strength in Asia, while crude oil fell back from new highs for the year reached after figures showed a decline in US production.
The Dow Jones industrial average fell 10.95 points, or 0.06%, to 18 101.66, the S&P 500 lost 1.88 points, or 0.09%, to 2 104.75 and the Nasdaq Composite dropped 3.93 points, or 0.08%, to 5 007.09.
Of the 36 companies in the S&P 500 that have reported thus far, 81% exceeded profit expectations, well above the long-term average of 63%. Only 47% have beaten on revenue, however, below the historical average of 61%.
"This is a pricey market. It needs earnings to sustain it, and the earnings need to be sustained by strong demand." said Uri Landesman, president of Platinum Partners in New York. "Right now I'm not thrilled with the level of revenue growth we're seeing."
Earlier in Asia, MSCI's broadest index of Asia-Pacific shares outside Japan touched a seven-year high and closed up 1.1%.
Crude oil edged off recent highs, with Brent crude down 0.7% to $62.85 a barrel and US crude down 1.7% to $55.44.
The Australian dollar hit a three-week high as stronger-than-expected Australian employment numbers reduced the likelihood of an interest rate cut in the next few months. The Australian dollar was last up 1.4% at $0.7790.
The euro was last 0.4% higher at $1.0730. The US dollar, which neared 121 yen at the start of the week, was little changed at 119.18 yen.
