A global measure of equity prices fell to a one-year low yesterday as Wall Street extended its October slide into a sixth session as investors feared an escalating US trade war with China and risks from a recent climb in interest rates.

Gold rose as sliding global stock markets prompted risk-wary investors to seek the metal, and a drop in US Treasury bond yields helped push the dollar lower.

MSCI's gauge of stock performance in 47 countries fell 2.2 per cent, the pan-European FTSEurofirst 300 index of leading regional share lost 2.1 per cent.

Most sectors in Europe traded in the red, with tech stocks bearing the brunt of selling pressure after the big overnight sell-off in US technology shares.

US consumer prices rose less than analysts had forecast in September, reducing expectations the pace of inflation is accelerating despite a tightening labor market.

Whether the lower reading will quell expectations the Federal Reserve will hike interest rates again in December remains to be seen, said Yousef Abbasi, global market strategist at INTL FCStone in New York.

In midday trade, Wall Street remained lower as risk-appetite showed no signs of picking up. The benchmark S&P 500 dropped below its 200-day moving average price, while the Dow Jones Industrial Average slipped below its 100-day moving average.

The Dow Jones Industrial Average fell 198.28 points, or 0.77 per cent, to 25,400.46. The S&P 500 lost 24.93 points, or 0.89 per cent, to 2,760.75 and the Nasdaq Composite dropped 30.71 points, or 0.41 per cent, to 7,391.34.

Benchmark US Treasury 10-year notes rose 14/32 in price, pushing their yield down to 3.1724 per cent.

It will take more than a daily stock market correction to stop the Fed from hiking, said George Goncalves, managing director and head of fixed income strategy at Nomura in New York.

The dollar index fell 0.31 per cent, with the euro up 0.4 per cent to $1.1564. The Japanese yen strengthened 0.01 per cent versus the greenback at 112.29.

Oil prices slumped to two-week lows as global stock markets fell, with investor sentiment made more bearish by an industry report showing US crude inventories rising more than expected.

US crude fell 1.98 per cent to $71.72 per barrel and Brent was last at $81.30, down 2.15 per cent on the day.