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New York - Global stock markets dropped on Wednesday as sliding oil prices and US tax doubts prompted investors to lower their risk exposure, traders said.
Equity markets in Frankfurt, London and Paris all fell. Wall Street also retreated, with the broad-based S&P 500 shedding 0.6%.
"European stock markets are lower again as the world-wide decline in equities rumbles on," said market analyst David Madden at CMC Markets UK.
But, he noted, "The single currency has had a good run in the past two days on account of the solid growth numbers from Germany yesterday, and the firmer inflation report from France today."
The euro built on gains won on Tuesday in response to the better-than-expected German growth figures - breaking above $1.18 to hit a near one-month high.
The pound steadied in the wake of better-than-expected UK wage growth, traders said, but remains weak on uncertainty about the political future of Britain's Prime Minister Theresa May as her government struggles on with Brexit talks.
Meanwhile, oil extended its declines after a US inventory report showed an increase in American petroleum production, deepening concerns about a supply glut.
Other commodity prices, including those of metals, followed suit, leading mining stocks lower, weighed down by concerns about a slowdown in China.
"The latest, industrial production, fixed asset investment, retail sales and housing sales out of China point to an economy that is cooling," Madden said.
In London, Glencore and BHP Billiton ended the day down more than two percent, while in Rio Tinto shed around 1.1%.
In the US, oil-linked shares ExxonMobil and Halliburton lost 1.2% and 2.9%, respectively.
Wall Street analysts expressed concern that an increasingly complex Capitol Hill debate on tax cuts could delay or derail the long-anticipated measure.
The most recent idea in the Senate is to repeal the Obamacare individual mandate as part of the plan.
"I don't think they will get anything before 2018. There are too many differences between the proposals," said Karl Haeling of LBBW, referring to the House and Senate versions of the legislation.
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