Stocks on both sides of the Atlantic dropped with the price of oil after Saudi Arabia's oil minister said the country won't cut output.
Earlier this month Saudi Arabia and Russia agreed to freeze oil production at January levels, if other producers will follow suit. Oil prices fell more than 5 percent.
"We are not banking on cuts because" there is "less than trust" that "countries are going to deliver even if they promise," Saudi Oil Minister Ali Al-Naimi said in Houston, Bloomberg reported. High-cost producers will have to "lower costs, borrow or liquidate" to cope with the slump in oil prices, Al-Naimi said.
"It may sound harsh, and unfortunately it is, but it is the most efficient way to rebalance markets," Al-Naimi noted. "Cutting low cost production to subsidise higher cost supplies only delays an inevitable reckoning."
While US Treasuries rose, Wall Street fell. In 12.54pm New York trading, the Dow Jones Industrial Average dropped 0.95 percent, while the Nasdaq Composite Index shed 0.99 percent. In 12.39pm trading, the Standard & Poor's 500 Index declined 1 percent.