Together with American equity index futures, shares in Europe and Asia dropped after the US Senate passed bills and took warning from Beijing that could possibly hinder the US and China's trade talks once again.

The fall in the Stoxx Europe 600 benchmark was driven by banks and oil producers. S&P 500 futures have fallen. Following China's risk of undefined retribution, the 10-year Treasury yield dropped to a three-week low and the offshore yuan strengthened.

The currency was edging higher. Shares in Hong Kong dropped along with indexes in Japan and South Korea. Australian equities suffered the biggest fall since financial crime charges at Westpac Banking Corp. struck monetary dealings.  Since plunging over 3 percent on Tuesday, oil steadied.

The Senate vote is a challenge for the Beijing government just as the US and China are seeking to conclude a phase-one deal to end their trade showdown.

The standoff could impeded negotiations with no fixed deadline in the offing. US Vice President Mike Pence said on Tuesday that if the protests in Hong Kong escalates further, it would be impossible for the US to sign a deal.

Meanwhile, American retailers' disappointing reports Tuesday reminded investors that the economy is not out of the woods.

Japanese data showing a fall in shipments on Wednesday has illustrated the trade dispute's international impact. The announcement of minutes from the last FOMC meeting later Wednesday may provide fresh insight into the views of the Federal Reserve.

"It's time for the prudent shareholder to be more vigilant," said George Ball, chairman of Sanders Morris Harris Group Inc., Houston investment firm, on Bloomberg TV.

This week's speakers for the central bank meeting will include district bank leaders Loretta Mester and Neel Kashkari, European Central Bank Chair Christine Lagarde, Bundesbank Chairman Jens Weidmann, Yves Mersch, Luis de Guindos, Pablo Hernandez de Cos and Philip Lane. 

Meanwhile, the Stoxx Europe 600 Index dropped by 0.5 percent in pre market trade in London. Futures on the S&P 500 Index fell by 0.3 percent. The British FTSE 100 Index was down by 0.6 percent, while the MSCI World Index for developed countries retreated by 0.2 percent. The MSCI Emerging Market Index shed 0.4 percent.

In currencies, the Bloomberg Dollar Spot Index was up 0.1 percent. The euro slid 0.1 percent to $1.1067. The British pound weakened 0.1 percent, while the Japanese yen soared 0.1 percent to 108.42 per dollar.

The yield on 10-year Treasuries dropped by 5 basis points to 1.73 percent, the lowest in almost three months. In contrast, the yield on two-year Treasuries decreased by two basis points to 1.57 percent.