In Europe the CAC (-0.6%) and DAX (-0.9%) lost ground whilst the FTSE (+0.3%) managed to record a modest gain.
Stateside, the Dow continued to slide, shedding 62 points (-0.5%), whilst the broader S&P gave up 0.3% and the Nasdaq finished square.
An early session rally in the US evaporated into the close, with investors remaining fixated on the debt-ceiling negotiations which remain deadlocked.
The failure of lawmakers to come to a resolution has seemingly convinced many investors that the government is on track to lose its coveted triple-A credit rating.
The US dollar firmed against the euro overnight but fell against other major currencies with traders keeping a close eye on the political developments in Washington.
Gold, copper and oil all firmed overnight, albeit modestly. Copper was the strongest performer of the three, up 0.5%.
Today’s session will bring us data in the form of private sector credit, at 11:30am, AEST.