Stocks and oil fell back Tuesday while gold and the yen climbed as investors turned cautious following last week's rally.
The Stoxx Europe 600 was off 1.4% in early trade, deepening Monday's losses. Energy and mining stocks suffered as Brent crude oil dropped 2.3% to $48.94 a barrel and copper prices shed 0.8% to $4,847 a ton.
Real estate shares also fell sharply after Standard Life Investments suspended trading in a U.K. commercial real-estate fund following Britain's vote to exit the European Union. Shares in British housebuilding companies Bovis Homes Group PLC and Taylor Wimpey PLC were down over 6%.
Futures pointed to a 0.6% opening loss for the S&P 500 following the Independence Day holiday. Changes in futures don't necessarily reflect market moves after the opening bell.
In Asia, Japan's Nikkei Stock Average fell 0.7%, snapping a six-session winning streak, as the yen climbed against the dollar.
Stocks in Hong Kong fell 1.5%, while Australian shares fell 1% after Australia's central bank left its cash rate unchanged.
The Shanghai Composite Index gained slightly, however, on hopes for state-owned enterprise reform and after a private gauge showed activity in China's services sector expanded at a faster rate in June.
In currencies, the dollar was last down 0.8% against the yen at Yen101.7550. The British pound fell 0.8% against the dollar to $1.3168, a day after the U.K.'s construction PMI fell to a seven-year low and ahead of the Bank of England's Financial Stability Report due later in the morning.
As investors sought havens, gold rose 0.7% to $1,347 an ounce. The yield on the 10-year U.S. Treasury note hit fresh lows. The bid yield fell as low as 1.382% in early European trade, a fraction below the previous intraday low of 1.385% reached on Friday, according to Tradeweb. while the yield on 10-year German government debt fell to minus 0.158%. Yields move inversely to prices.
Christopher Whittall contributed to this article.
Write to Riva Gold at email@example.com