US. stocks fell, with the S&P declining 0.2%, as selling in large-cap technology shares intensified.
US Treasuries advanced with gold after North Korea ratcheted up tensions with America. Haven assets advanced after North Korean Foreign Minister Ri Yong-Ho described President Donald Trump’s recent comments as tantamount to a declaration of war.
In Europe, equities declined 0.1% and the euro weakened after Chancellor Angela Merkel won Germany’s election, while the country’s main far-right party had a surprisingly strong result.
Investors were expecting a victory for Angela Merkel, but there has been a surprise in the relatively poor performance of the CDU and SPD, who suffered their worst results since 1949.
In the UK equities followed their European and US counterparts lower falling 0.1%.
European Union Chief Brexit negotiator Michel Barnier and U.K. counterpart David Davis begin their next round of negotiations this week.
In Asia overnight, technology stocks fell, weighing on the benchmark index, as investors largely shrugged off the latest threats from North Korea that hampered US equity performance on Monday. Japanese equities fell 0.3% while Chinese equities declined 0.2%.