Major stock markets mostly retreated Wednesday as investors braced for a US Federal Reserve policy decision, with fresh data reviving the possibility of more US rate hikes before the end of the year.
The dollar and oil prices also declined.
Equities had been boosted Tuesday by Beijing's pledges of stimulus after a string of readings showed the post-Covid economic recovery was going off the rails in China.
Focus has returned to central banks' battle to tame inflation, with the Fed tipped to deliver another increase in borrowing costs on Wednesday.
While the outcome of the meeting is largely accepted, debate is now centred on whether it will announce another hike later in the year.
There had been hopes that this month would see the end of the tightening cycle but data Tuesday showing a key gauge of US consumer sentiment at a two-year high has stoked talk of more to come.
Post-meeting comments by bank chief Jerome Powell will be closely followed for an idea about officials' plans for the rest of the year.
"While Powell will try and make the case for further rate hikes, his time would be better spent in making the case for rates remaining higher for longer, and projecting when the (Fed) expected the two-percent (inflation) target to be met," said CMC Markets analyst Michael Hewson.
After the Fed, attention turns to the European Central Bank, which announces its own rate decision Thursday, followed by the Bank of Japan on Friday.
The Paris stock market fared worse than London and Frankfurt on Wednesday, shedding nearly two percent in afternoon deals.
It was dragged down by luxury group LVMH, whose shares dropped nearly five percent.
"LVMH reported first half results after the European close (Tuesday), and highlighted a weakening trend in US sales," noted Steve Clayton, head of equity funds at Hargreaves Lansdown.
On the upside, shares in Rolls-Royce, the British maker of aircraft engines and other power systems, soared more than 21 percent as a turnaround plan under new leadership delivered far better-than-expected results.
Shares in Google-owner Alphabet shot up six percent at the start of trading in New York after beating earnings expectations.
Microsoft, which also beat expectations, saw its shares fall 2.9 percent as its performance showed it will take a bit of time and investment to fulfill its AI visions.
Briefing.com analyst Patrick O'Hare said the lower open on Wall Street was "the look of resignation that it is getting more challenging for this rally to keep running unabated in the near term".
- Key figures around 1330 GMT -
New York - Dow: DOWN 0.4 percent at 35,311.19 points
London - FTSE 100: DOWN 0.8 percent at 7,632.72
Frankfurt - DAX: DOWN 1.3 percent at 16,005.51
Paris - CAC 40: DOWN 2.1 percent at 7,258.80
EURO STOXX 50: DOWN 1.8 percent at 4,314.00
Tokyo - Nikkei 225: FLAT at 32,668.34 (close)
Hong Kong - Hang Seng Index: DOWN 0.4 percent at 19,365.14 (close)
Shanghai - Composite: DOWN 0.3 percent at 3,223.03 (close)
Euro/dollar: UP at $1.1070 from $1.1058 on Tuesday
Pound/dollar: UP at $1.2915 from $1.2902
Euro/pound: UP at 85.73 pence from 85.68 pence
Dollar/yen: DOWN at 140.34 yen from 140.95 yen
West Texas Intermediate: DOWN 1.0 percent at $78.86 per barrel
Brent North Sea crude: DOWN 0.9 percent at $82.91 per barrel