In Europe the FTSE shed 62 points (-1.1%) to settle at 5671, whilst the CAC (-1.6%) and DAX (-1%) lost similar ground.
Stateside, the Dow Jones fought back towards the close to end just seven points underwater, at 12654, whilst the broader S&P was slightly weaker, giving up 0.3%.
It was the third consecutive losing session for the S&P, which earlier in the session slumped as much as 1.2%.
Economic data in the US continues to show signs of improvements. The Dallas Fed manufacturing jumped index to an 11-month high of +15.3 from -0.3 in January.
Personal incomes grew by 0.5% in December – matching the largest gain in nine months.
The Aussie dollar has slipped back to US$1.05, whilst the euro weakened 0.7% and the US dollar Index added 0.4%.
Oil fell by 0.8% to US$98.78 a barrel in a volatile trading session a day after Iran postponed a parliamentary debate to halt crude sales to the European Union.
Base metal prices were lower; Copper lost 1.2% as Chinese buying did not materialise on the first session after the week long holiday.
Gold fell slightly, down 0.1% to US$1,734.40 an ounce.
Today’s session will bring us data in the form of NAB business confidence and private sectors credit, 11:30am, AEDT.
We will also be in receipt of production numbers from Lynas and Origin while Woolworths releases quarterly sales figures.