European stocks closed mostly lower on Tuesday, with lingering worries about the crisis in Syria and the hotly contested French election creating a cloud over sentiment.

U.S. stocks pared losses to close with small losses Tuesday as investors remained cautious over assets perceived as risky, such as equities, on rising geopolitical tensions. Tuesday's moves come as investors focus on the latest geopolitical developments, as the U.S. has taken a hard line on Syria at a G-7 meeting and North Korea has warned that it is ready for war should U.S. Navy ships advance to the Korean Peninsula.

Gold continued to rise and the yen hit fresh five-month highs against a host of other currencies in early Asian trade on Wednesday as investors continued to move money out of risky assets. Investor worries over Syria and North Korea sent gold and 10-year Treasury yields to their best levels since November overnight.