Confidence remains low for Greece as negotiations with the country's creditors rumble on. The climate has undermined the positive effect low borrowing costs would normally have on equities.
In the wake of weak performance in Asia, the pan-European FTSE Eurofirst 300 dropped 1 per cent to a fresh low since February, while in the US the S&P 500 will fall 4 points to 2,096 if US index futures forecasts are accurate.
According to the Fed, economic activity has been growing steadily after a slow start to 2015. Although jobs increased in the US, household spending saw little fluctuation despite a lift in the housing sector.
Down from its March estimate of 2.7 per cent, the central bank revised its forecast for US growth for US economic expansion this year to around 2 per cent.
The sensitive two-year US bond yield has also fallen 3 base points to 0.63 per cent while the benchmark 10-year yield is down by 4 base points to 2.26 per cent.
German bonds are tracking US peers but are undergoing 'haven' buying as investors demonstrate their lack of confidence over Greece's potential default and exit from the Eurozone.
The cash-strapped nation's central bank issued a warning that the Greek government could enter an "uncontrollable crisis" if a settlement is not made soon. Athens' 10-year implied borrowing costs are up 6 more base points to 13.18 per cent and the stock market is down 3.1 per cent, hitting a new two-year low.