U.K. stocks closed lower Wednesday after a stronger-than-expected reading on British economic growth drove the pound up against the U.S. dollar and the euro. The FTSE 100 index UKX, -1.05% fell 1.1% to end at 7,447.21. On Tuesday, the London benchmark rose less than 0.1%, notching a third straight gain. It was also the third session in a row that stocks closed with a move smaller than 0.1%.

The S&P 500 and the Dow on Wednesday posted their biggest one-day declines in more than seven weeks on a string of disappointing earnings, even as the stock market pared early losses.

A global stock pullback moved into Asia on Thursday, with most markets down modestly following similar-sized declines overnight in Europe and the U.S., pausing what has been a big month of gains for many indexes.