European stocks retreat after rally
European stocks retreated, after the Stoxx Europe 600 Index reached its highest valuation in almost three years, offsetting gains by lenders as central-bank governors diluted a proposed liquidity rule.
US index futures fluctuated, while Asian shares fell.
Rolls-Royce lost 1.6 per cent following a report that it bribed an executive in China to win orders.
A gauge of European lenders rose 1.6 per cent after the Group of Governors and Heads of Supervision agreed to relax and delay the standard.
Peugeot rallied 6.1 per cent after a brokerage said the company will probably start selling assets.
The Stoxx 600 declined 0.2 per cent to 287.31 at 12.05pm in London as two stocks dropped for every one that climbed.
The equity benchmark closed at its highest level since February 2011 last week after US lawmakers agreed on a compromise budget.
Futures on the Standard and Poor's 500 Index expiring in March slipped 0.1 per cent, while the MSCI Asia Pacific Index retreated 0.3 per cent.
"It's another positive for the banking sector, which could be an important barometer for investors," said Daniel Bjork, who helps oversee about 52.6 billion Swiss francs (€43.3 billion) at Swisscanto Asset Management AG in Zurich.
"The relaxation was more than what was expected both with increasing the liquidity range and with the longer phasing-in period."