Equities extend losses as government shutdown concerns weigh on Wall Street

The U.S. House of Representatives passed a spending bill that includes funds designated for President Donald Trump's proposed border wall with Mexico, in an attempt to keep the government running. "However, we expect the proposal to be rejected by the Senate before Friday's midnight deadline, increasing the chance of a partial federal government shutdown," Danske Bank Research said in a note.

Meanwhile, tensions between the U.S. and China reignited after Washington indicted two people associated with China's Ministry of State Security on claims that they stole data from the U.S. government and companies across the world. China's foreign ministry rejected the allegations of economic espionage and urged the U.S. to reverse its stance.

Overnight, the S&P 500 fell 1.58%, led by losses in the energy and technology sectors, while the Nasdaq Composite closed 1.63% lower. Futures for the S&P 500 were down by 0.43% and for the Nasdaq 100 by 0.51% as of 6:30 a.m. ET.

Asian markets tracked losses on Wall Street, with the Shanghai SE Composite losing 0.79% and Japan's Nikkei 225 index down 1.11%. Hong Kong's Hang Seng index closed 0.51% higher, with Tencent Holdings Ltd.'s shares gaining 4.51% after Chinese regulators reportedly approved some new games for sale in the country, lifting an approval freeze in place since March.

In Europe, the Euro Stoxx 50 index shed 0.69%, the FTSE 100 fell 0.37% and Germany's DAX index was down 0.36%.

"Heading as we are to potentially the worst monthly December performance for U.S. equity markets since the 1930's it would be easy to think that we could well be heading for further heavy declines," wrote Michael Hewson, chief market analyst at CMC Markets UK.

Yields on 10-year U.S. Treasurys hovered near 2.80%, while the dollar regained momentum, with the index tracking the currency's performance against a basket of peers rising 0.29% to 96.55. Investors await data on the U.S. economic growth and inflation today.

The euro lost 0.16% against the dollar, while the Japanese yen rose 0.12%. The pound gained 0.13% as U.K. GDP growth in the third quarter was confirmed at 0.6%.

Brent crude oil slid 1.69% to $53.43 per barrel on the ICE Futures Exchange. Gold fell 0.42% to $1,262.60 per ounce.

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The day ahead:

8:30 a.m. ET — U.S. durable goods orders (Econoday consensus: new orders 1.4% monthly)

8:30 a.m. ET — U.S. GDP (Econoday consensus: 3.5% quarterly)

8:30 a.m. ET — Canada monthly GDP

8:30 a.m. ET — Canada retail sales

8:30 a.m. ET — U.S. corporate profits

10 a.m. ET — European Commission consumer confidence flash

10 a.m. ET — U.S. personal income and outlays (Econoday consensus: core PCE price index 0.2% monthly, personal income 0.3% monthly, consumer spending 0.3% monthly)

10 a.m. ET — U.S. consumer sentiment (Econoday consensus: 97.5)

11 a.m. ET — Kansas City Fed manufacturing index

1 p.m. ET — U.S. Baker-Hughes rig count

Editor's note: The Global Markets Wrap will not be published Dec. 24 and Dec. 25 on account of the holidays. This feature will return Dec. 26.