Brent crude oil prices climbed to nine-month highs as worries that Iran might interrupt supply outweighed concerns about the health of the global economy.
The 130 billion-euro second bailout for Greece approved by euro zone finance ministers on Monday meant imminent default by Athens has probably been avoided. But many analysts doubt the country can be put on a sustainable footing.
The worries added to the uncertain tone for equities and the euro.
"While a Greek bailout has been reached over the long weekend, the process of implementation and final hurdles still pose significant risks," said Ian Lyngen, senior government bond strategist at CRT Capital Group in Stamford, Connecticut.
"We're also reminded that even with a smooth execution of the deal, it does very little to address the longer-term competitive challenges facing the Greek economy," Lyngen added.
The MSCI global equity index was down 0.3 percent, while US stocks were slightly lower. The FTSEurofirst index of top European companies was down 0.7 percent.
The Dow Jones Industrial Average was down 7.49 points, or 0.06 percent, at 12,958.20. The Standard & Poor's 500 Index was down 1.57 points, or 0.12 percent, at 1,360.64. The Nasdaq Composite Index was down 6.43 points, or 0.22 percent, at 2,942.14.
In the US Treasury market, the benchmark 10-year note was last up 10/32, with the yield at 2.026 percent.
The euro was flat against the greenback as optimism about Greece's bailout deal gave way to concerns about how the terms will be implemented. The yen skidded to a seven-month low against the dollar, with more weakness expected as recent monetary easing in Japan put pressure on the currency.
The February reading on the flash euro zone services Purchasing Manager's Index (PMI) of 49.7 was below forecasts and under the 50 level that signifies contraction but followed three months of consecutive increases.
The reading, along with signs of weakness in a similar index for Germany, clouded optimism about the resilience of Europe's economy to the region's debt crisis. However, a separate survey showed France's manufacturing sector managed a marginal but unexpected return to growth in the month.
A rise in factory orders across the 17-nation euro area in December, led by an increase in new orders from Italian factories, tempered the worries, although overall industrial orders in the region were down 1.7 percent in December compared with a year ago.
China's new export orders shrank in February, the most in eight months, a preliminary HSBC business survey shows, defying expectations of a pick-up and a worrying sign of the impact of the euro area debt crisis.
HSBC's February flash PMI, which showed the overall manufacturing sector shrinking for the fourth-straight month, suggested overseas demand was sliding even further.
China's economic growth is widely seen slowing down in January to March for its fifth consecutive quarter, prompting growing hopes of further policy easing measures from China's central bank.
Despite the worries about the global economic outlook, Brent crude oil reached a nine-month high on geopolitical worries. Brent crude for April delivery was up $1.41 at $123.07 a barrel.
