Wall Street down on cliff caution, European shares edge up

US stocks slipped today in a choppy session, losing ground after Senate Majority Leader Harry Reid expressed disappointment that there has been "little progress" in dealing with the so-called fiscal cliff.

The Dow Jones industrial average closed down 89.24 points, or 0.69 percent, at 12,878.36. The Standard & Poor's 500 Index dropped 7.35 points, or 0.52 percent, to finish at 1,398.95. The Nasdaq Composite Index fell 8.99 points, or 0.30 percent, to end at 2,967.79.

European shares edged higher today after an agreement by international lenders to cut Greece's debt gave some short-term support to investor sentiment.

The FTSEurofirst 300 index, which rose 4 percent last week, closed up 0.3 percent at 1,107.65 points as the Greek deal clearing the way for the next tranche of aid to Athens. The blue-chip Euro STOXX 50 index failed to perform as well, ending just slightly higher at 2,543.45 points.

In Asia, the Nikkei nudged up to a seven-month closing high. It closed up 0.4 percent at 9,423.30, its fourth straight day of gains and its highest close since April 27.