The risk aversion environment affected the euro and favored the US Dollar and the yen.
Markets reacted with relief to the prospect of a political government. The euro was back under 1.1550 still under pressure. Madrid's IBEX bourse .IBEX was down nearly 2.5 percent.
A former International Monetary Fund official was instead asked to become interim prime minister at the head of a caretaker administration that would hold office until new elections could be held later this year. Compared to the previous year, unemployment fell 1.088 million.
Asia flinched, too. Japan's Nikkei .N225 slipped 0.6 percent and Chinese and Hong Kong shares ended 0.6 to 0.7 percent in the red.
Bond yields dropped, and with them, interest rates on mortgages and other kinds of loans, hitting bank stocks on expectations lenders would earn thinner profits.
A Reuters poll conducted before the release of the regional data suggested that Germany's harmonised consumer price inflation (HICP) rate would rise to 1.8 percent in May.
Australia's S&P ASX 200 fell 0.6 percent to 5,979.00.
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Emerging market stocks lost 1.0 percent, marking a new low point for the year, under continued pressure from a rising US dollar for countries that often borrow in that currency.
The Australian and New Zealand dollars were steady at US$0.7545 and US$0.6939, respectively.
The euro dived against the dollar and yen Tuesday to lows not seen since mid-2017 and it extended the losses in Asian trade.
TREASURIES: U.S. government bond prices jumped as investors moved money into lower-risk assets.
An aide to North Korean leader Kim Jong Un arrived in Singapore on Monday, Japanese public broadcaster NHK reported, and the White House said a "pre-advance" team was traveling to the city to meet the North Koreans.
"President (Donald) Trump has not accomplished very much in terms of trade issues and is likely to remain vocal with the USA mid-term elections coming up".
ENERGY: U.S. crude oil climbed 43 cents to $67.16 per barrel in electronic trading on the New York Mercantile Exchange while Brent crude, used to price global oils, added 71 cent to $76.20 a barrel in London.
Meanwhile, in the United Kingdom, The Sterling edged up by 0.08 percent against the Greenback on Thursday, to trade 1.32954 at the close.
His comments came after the energy ministers of Russian Federation and Saudi Arabia met to review the terms of global oil supply, ahead of a key OPEC meeting in Vienna next month. Brent crude, used to price worldwide oils, dropped 40 cents to $77.16 per barrel.