NEW YORK: Wall Street has been dragged down by financial shares, but has rebounded from steeper initial losses as investors assess how the defeat of President Donald Trump's first major legislative action will impact the rest of his agenda.
The Dow Jones Industrial Average suffered its eighth straight session of declines, while the Nasdaq retraced losses to close higher.
With stocks soaring to record highs after Trump's election, investors are concerned about the fate of his agenda, including tax reform and infrastructure spending. Congressional Republicans pulled their healthcare overhaul bill on Friday after failing to gather enough votes.
The Dow Jones Industrial Average closed 0.22 per cent lower at 20,550.98, and the S&P 500 lost 0.10 per cent to 2,337.8.
The Nasdaq Composite added 0.20 per cent, to 5,840.38.
LONDON: The fall in risk appetite dominated European stock markets, with the pan-European STOXX 600 index - which has risen around 10 per cent since Trump was elected - falling around half a per cent.
The Basic Resources index was the biggest sectoral loser, down 2 per cent to a two-week low as copper prices slipped, while the banking index was down 1.2 per cent.
Fresh off its healthcare bill defeat, the White House warned rebellious conservative lawmakers they should get behind Trump's agenda or he may bypass them on future legislative fights, including tax reform.
Bucking the weaker trend among European stocks were precious metal miners such as Randgold and Fresnillo, both up more than 1 per cent, as risk aversion boosted gold, traditionally used as a safe haven at times of market angst.
Germany's DAX fell 0.57 per cent to 11,996.07, while London's FTSE 100 lost 0.59 per cent to 7,293.50
TOKYO: Asian markets struggled as President Trump's failure on healthcare reform raised questions about his ability to push through tax cuts and fiscal spending to boost the economy.
It also spurred a rush to safety assets such as gold and the Japanese yen.
MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.1 per cent, while Tokyo's Nikkei fell 1.44 per cent to close at 18,985.59 as the yen rebounded in the face of renewed US dollar weakness.
Hong Kong stocks fell as fresh measures to curb China's heated property market weighed on shares of developers, offsetting data showing strong profit growth for industrial companies early in the year.
The Hang Seng index fell 0.68 per cent to 24,193.70 points, while the China Enterprises Index lost 1.1 per cent to 10,362.02.
China stocks also slipped as any optimism felt from data showing surging profits at industrial firms was offset by the fresh property curbs and signs that monetary policy may be further tightened.
The blue-chip CSI300 index fell 0.3 per cent, to 3,478.04 points, while the Shanghai Composite Index was flat, shedding 0.08 per cent to 3,266.96 points.
WELLINGTON: The S&P/NZX 50 Index declined 11.11 points, or 0.2 per cent, to 7,062.72.