Global equity investors waited to see what had changed in Europe, after the appointment of two respected economists as prime ministers of Italy and Greece.
Britain's FTSE 100 fell 0.9 per cent, France's CAC 40 lost 1.6 per cent, and Germany's DAX fell 1.4 per cent. Japan's Nikkei gained 1.1 per cent, while Hong Kong's Hang Seng surged 1.9 per cent.
Dow futures dipped 39 points, or 0.3 per cent, to 12,073, while S&P 500 futures edged 7 points, or 0.6 per cent, lower to 1,254.60.
The euro climbed after Italy easily raised 3-billion euros in a key debt auction. Investors demanded an interest rate of 6.29 per cent, the highest level since 1997, compared with 5.32 per cent at a similar auction a month ago.
Premier-designate Mario Monti began talks on forming a new government of experts to guide the country through its financial crisis and restore market confidence.
Italy's problems have pushed the collapse of the much smaller Greek economy out of the spotlight. Greece's new prime minister, Lucas Papademos, is a former European Central Bank vice-president who is under pressure to implement radical reforms aimed at staving off bankruptcy.
The new Greek leader, who oversaw his country's entry to the euro zone in 2002, must win a Wednesday confidence vote in his cabinet before meeting euro zone finance ministers in Brussels on Thursday.
Inspectors from the International Monetary Fund, European Central Bank and European Union are due to start arriving in Athens on Monday to see whether Greece will qualify for a second bailout worth 130-billion euros and an 8-billion tranche from the earlier bailout that is needed to finance bond payments due at the end of the year, according to Reuters data.
Copper rallied as investors took the change of leadership in Italy and Greece as a sign that European reform is under way and may prevent a disorderly default and a break up of the euro zone. Three-month copper on the London Metal Exchange rose more than 2 per cent to $7,816 (U.S.) a tonne.
U.S. crude oil traded $1.10 cents lower at $97.89 a barrel, after touching $99.69, its highest since July.
Gold fell $11.10 to $1,777 an ounce.
The Canadian dollar traded at 98.13 U.S. cents.