European stocks pared losses Tuesday after U.K.'s Prime Minister Theresa May said Britain will break away from the European Union's single market and British lawmakers will be able to vote on Brexit's terms. May, in a highly anticipated speech in London, said Britain does "not seek membership of the single market but the greatest possible access to it," signaling a so-called hard Brexit from the other 27 members of the EU.

U.S. stocks retreated on Tuesday as investors remained cautious in the wake of President-elect Donald Trump's charge that a strong dollar is hurting the economy. "There is a lot going on this week, making investors slightly cautious. For example, the Davos meeting is where a confrontation between globalization and populism is on full display," said Jack Ablin, chief investment officer at BMO Private Bank, referring to the World Economic Forum's annual meeting in the Swiss Alps.

Asian markets were broadly lower Wednesday, following drops overnight in U.S. stocks on worries about the economic impact of the policies of President-elect Donald Trump, who will be inaugurated on Friday.