The pan-European STOXX 600 index turned negative and was down 0.2%, weighed down by export-heavy mining stocks. Paris' CAC 40 was among the top drags with the index sliding 0.5% to more than one-month lows.
U.S. stock futures were down 0.3% as of 1026 GMT.
The dollar rallied against the Chinese offshore yuan to its strongest since Oct. 30 and was last up 0.4% at 7.068 yuan <CNH=EBS>. Safe-haven currencies the Japanese yen and Swiss franc also made gains <JPY=EBS> <EURCHF=EBS>.
European government bond yields retraced some of their overnight rises, with 10-year German bond yields down 2 bps at -0.299%.
In early European trading, ten-year German bond yields had hit a three week high of -0.26 percent.
(Reporting by Tommy Reggiori Wilkes, Thyagaraju Adinarayan, Julien Ponthus and Saikat Chatterjee; Editing by Dhara Ranasinghe)