The Stoxx Europe 600 Index was down 0.3% by the close, extending losses since Monday to 2.2%.
S&P 500 futures were up 0.72%, after the index fell for a third consecutive day on Thursday to mark a 1.9% drop for the week to date.
The yen fell even with the threat of currency intervention from Japanese authorities to support it. Oil prices wallowed near two-month lows
Data showed US consumer prices were unchanged in October amid lower gasoline prices, while underlying inflation showed signs of slowing.
European stock markets retreated, hit by weak manufacturing data across the region.
House Republican Speaker Kevin McCarthy said Monday morning's debt talks were "on the right path" ahead of a meeting with U.S. President Joe Biden. June 1 remains a "hard deadline" after which Treasury expects the federal government will struggle to pay its debts, a stance the agency reiterated on Monday.
Wall Street woke up in the red, but European markets were up in afternoon deals, with London's FTSE 100 index hitting a record 7,934.30 points before paring down gains.
Liquidity was thin during Asian trading hours as markets in China, Hong Kong, Singapore, Malaysia, South Korea and Taiwan were closed for the Lunar New Year holiday.
The MSCI world equity index, which tracks shares in 47 countries, was up 0.1% on the day and MSCI's main European Index hit a five-week high, up 0.8% on the day.
Britain's new finance minister Jeremy Hunt announced he was reversing "almost all" the tax measures laid out by Prime Minister Liz Truss and his predecessor Kwasi Kwarteng just three weeks ago.
Stock markets tumbled Thursday as central banks hiked interest rates in efforts to tame runaway inflation which has raised fears of recession.
An index of euro zone shares (.STOXXE) gained 1.6%, bouncing off lows hit after the statement. Euro zone banks (.SX7E) climbed 2.5%, but were off highs hit earlier in the session.
While the ECB's decision was widely expected by the markets for weeks, the possibility of a larger increase in interest rates from September weighed on sentiment at a time when the eurozone economy is grappling with slowing growth and soaring inflation.
Historically significant technical levels for the S&P 500 show the index has room to fall nearly 14% more before hitting key support levels, while the share of companies that have so far hit a one-year low is still a far cry from the number during the economic growth scare that slammed stocks in 2018.
The pound hit a two-year low at $1.2276, one day after the Bank of England (BoE) warned that UK inflation would top 10 percent and the economy contract later this year.
European stocks were down sharply after having surging the previous day on sliding oil prices and a glimmer of hope for an end to the conflict that has seen Western nations slap a range of sanctions on Russia that will result in its economic isolation. US stocks also opened lower, with the Dow shedding 1.1 percent.
Wall Street opened sharply higher, with the S&P 500 and tech-heavy Nasdaq above two percent.
London's benchmark FTSE 100 advanced 0.5 percent to 7,531.42 points compared with Tuesday's closing level.
The Shanghai Composite Index put on 0.66 percent, or 22.72 points, to 3,490.76, while the Shenzhen Composite Index on China's second exchange rose 0.42 percent, or 9.63 points, to 2,311.79.
London's benchmark FTSE 100 index edged up 0.1 percent to 7,539.83 points.
Markets are on alert for rate rises in both the euro zone and the United States after the ECB last week was considered to have adopted a more hawkish tone. The United States reported stronger-than-expected jobs and earnings data.
US equities closed mixed as financials led decliners, while oil rebounded following the release of key supply data. The Dow Jones fell about 35 points, with Goldman Sachs contributing the most losses. The 10-year u-s benchmark bond yields declines for a third consecutive day to 2.34 percent, the lowest level in three weeks.
The Pan-European Stoxx 600 was 0.22 percent lower with most sectors trading in the red.
Trump's immigration ban continues to create public outcry across the world. Overnight, Trump fired the federal government's top lawyer after she denied implementing the travel restrictions. The tech giant Amazon said it is considering a legal challenge against the ban.