European markets fell on fresh concerns that Greece would default on its debt, but losses were more moderate on Wall Street and President Obama called for higher taxes on the rich as part of a broader plan to spur growth and narrow the U.S. deficit.
In Europe, the CAC 40 fell 3 percent in Paris, as the DAX slipped 2.8 percent in Frankfurt and the FTSE 100 declined 2 percent.
Investors grew jittery after European finance ministers said they would delay more emergency funding for Greece until next month. That raised concerns that the country might have difficulty avoiding a default on its debts.
In the U.S., the S&P Retail Index was down 0.7 percent, or 3.93 points, to 529.24, and the Dow Jones Industrial Average was off 1.4 percent, or 164.05 points, to 11,345.04 headed into the last hour of trading.
Among the retail decliners were J.C. Penney Co. Inc., down 3.4 percent to $27.05, and American Eagle Outfitters Inc., off 1.7 percent to $11.27.
In addition federal cost cutting and measures to boost employment, Obama proposed that people making more than $1 million a year should not pay a smaller share of their income in taxes than middle-class families.