The FTSE (+0.5%) and CAC (+0.3%) recorded modest gains whilst the DAX continued its losing ways.
The DAX tumbled 19% last month, its biggest monthly retreat since September 2002, and continues to be at the mercy of investors looking for short exposure as German regulators refuse to introduce a short selling ban.
Stateside the Dow Jones gave up 120 points (-1%), whilst the S&P 500 shed 1.2% and the Nasdaq gave up 1.3%.
The move lower in the US halted a four-session rally, with the bulls taking their foot off the pedal ahead of tonight’s jobs report.
The US dollar index rose to a two-week high amid stronger-than-forecast factory data which saw traders reduce bets that the Fed will take further steps to stimulate growth.
Elsewhere, the Canadian dollar traded near its strongest level against the greenback in close to a month and also climbed against the euro and yen ahead of the Bank of Canada’s policy meeting next week.
Crude oil rose to a four-week high in New York amid supply concerns due to companies evacuating platforms in the Gulf of Mexico ahead of a developing storm.
The black gold added 12 US cents, settling at US$88.93 a barrel.
Gold move lower for the first time in three sessions following the better-than-expected US manufacturing data. Bullion gave up US$2.60 (-0.1%) to settle at US$1829.10 an ounce.
There is no major local data due out for today’s session but traders around the world will no doubt be thinking ahead to tonight’s key US non-farm payroll numbers, due out at 10:30pm, AEST.