The pan-European Stoxx 600 dropped 0.5% in early trade, with autos shedding 1.3% to lead losses as all sectors and major bourses slid into the red.
The declines on Wednesday come after European markets rallied yesterday, with the European blue chip index closing 3% higher. Travel and leisure stocks jumped 6.1% to lead gains as all sectors and major bourses closed in positive territory.
Overnight in Asia-Pacific markets, shares traded higher after U.S. stocks rallied for a second day Tuesday. U.S. stock futures were lower on Wednesday morning.
The two straight days of gains came on the back of a pullback in bond yields, with the 10-year Treasury yield falling below 3.6% at one point after topping 4% briefly last week.
A weakening in the most recent job openings data prompted some investors to consider whether the Federal Reserve would slow the pace of interest rate hikes, reducing the likelihood of a deeper recession.