US. stocks fell, declining 0.8%, ending a six-day rally, as tensions with North Korea mounted and another Atlantic hurricane threatened to make US landfall.
In line with the move in stocks, U.S. 10 year Treasury yields fell amid lingering unease over North Korean plans for a ballistic missile launch, while Hurricane Irma threatened a region already dealing with the devastation from Harvey.
Oil climbed for a third day, rising 2%.
In currency news, the dollar lost ground against the euro following dovish comments from Fed Governor Lael Brainard.
European equities fell 0.3% as investors assess geopolitical risks tied to North Korea’s nuclear test ahead of a meeting of the European Central Bank on Thursday.
A recent survey indicates that investors expect Draghi will carefully express concern over the euro’s strength, but will wait until the October meeting to outline the future path of the asset-purchase program in detail.
In Asia overnight, most stock markets fell as nations grapple with how to deal with escalating provocations from North Korea.
Chinese equities were flat overall and Japanese equities declined 0.1% as the yen approached its strongest level year to date.