European stocks finished in the red Monday, alongside a slide for global equities, as investors continued to worry the Trump administration will not be able to push through its reforms.

U.S. stocks overcame steep losses Monday but the Dow industrials and S&P 500 still closed lower as investors reassessed the prospects for President Donald Trump's ambitious economic agenda after a Republican plan to repeal and replace Obamacare was scrapped last week.

Stock markets recovered early Tuesday, with higher oil prices and a rebound in the U.S. dollar against the yen driving gains in Australia and Japan. Investors were also looking beyond the failure of the Trump administration to replace the Affordable Care Act, aided by improving macroeconomic data out of the U.S. and Europe.