Investors took a step back from riskier assets after China's trade surplus narrowed sharply for a second month, reflecting weakness in the global economy, and concerns over Europe continued to simmer.
Britain's FTSE 100 dipped 0.8 per cent, France's CAC 40 slipped 0.8 per cent and Germany's DAX fell 1.2 per cent.
U.S. stock index futures pointed to a lower start on Wall Street, ahead of U.S. international trade numbers and the latest weekly jobless claims. Dow futures declined 19 points, or 0.2 per cent, to 11,397, while S&P 500 futures edged 3.3 points, or 0.3 per cent, lower to 1,194.90.
The euro pulled back from a one-month high against the U.S. dollar after the European Central Bank raised the alarm about the impact of involving bondholders in euro zone bailouts. The euro hit a session low of $1.3711 (U.S.) after an article in the ECB's monthly report said forcing private bondholders to accept losses on euro zone sovereign debt could damage the euro's reputation.
Meanwhile, the head of Germany's central bank said it may be necessary to write off some of Greece's debt, but that it is not an overall solution to the country's economic problems. Bundesbank President Jens Weidmann was also critical of the European Central Bank's recent purchases of bonds from troubled countries, saying "we're at best buying time, taking risks, but not solving the real problem."
Carrefour, Europe's biggest retailer, issued its fourth profit warning in as many months, adding to signs cash-strapped shoppers are cutting back and increasing doubts about its turnaround plan.
Copper prices sagged to $7,422 a tonne after China said its trade surplus narrowed in September, with both imports and exports lower than expected. China is the world's largest copper consumer, accounting for nearly 40 per cent of global demand estimated this year at around 20 million tonnes.
U.S. crude oil slipped $1.41 to trade at $84.16 a barrel.
Gold declined $12.50 to $1,670.10 an ounce.
The Canadian dollar dipped to 97.88 U.S. cents.