Signs that European governments will take longer than expected to agree the details and set up their banking supervisor also weighed on sentiment.
By midafternoon in
Global stock markets rallied late last week after the Fed announced it planned to buy
While investors were still in the mood to take on more risk, "the risk of profit taking has grown given the pace and magnitude of recent moves," strategists at Credit Agricole CIB said in a research note.
"If markets don't rally and volumes don't increase this week then they are unlikely to during the rest of the year," Sullivan said. He said he had doubts that investors would return to the markets.
Uncertainties include the state of the U.S. economic recovery and
A meeting of the 17 eurozone finance ministers over the weekend showed it will take months of negotiations and preparation to set up a new European banking union. Eurozone countries are, among other things, divided over how many banks should be supervised by a new authority with the ability to bail out the lenders directly.
Creating a European banking union is important to ease concerns that bank failures might bring down the government finances of financially weak states such as
Earlier, in Asian trading,
Indian stocks rose after the country's central bank cut the cash reserve ratio and the government opened its huge market to foreign retailers in a bid to kick-start flagging economic growth.
Sullivan, the sales trader, speculated that Chinese authorities could unveil economic stimulus measures ahead of a
In commodities markets, the crude contract for October delivery was up
In currencies, the euro rose to
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