Stocks in the United States fell on Monday, stifling earlier enthusiasm for a Chinese stimulus plan.
The financial sector fell after Barclays Capital analysts said they expect Goldman Sachs to post a quarterly loss for the first time in its history. Shares in Goldman lost more than 8%.
Shares in General Motors fell to their lowest in 62 years after Deutsche Bank lowered its equity value on the automaker to zero.
In addition, the cost of rescuing American International Group Inc jumped to $US150 billion after a smaller bailout failed to stabilize the insurance company.
Stocks worldwide initially rose after China approved a government spending package worth four trillion yen ($US586 billion) and said it would adopt a "moderately easy" monetary policy.
But the Dow Jones industrial average fell 73.27 points, or 0.82%, to 8,870.54.
Standard & Poor's 500 Index dropped 11.78 points, or 1.27%, to 919.21. The Nasdaq Composite Index was down 30.66 points, or 1.86% , at 1,616.74.
Trading volume was low on the New York Stock Exchange: about 1.14 billion shares changed hands, well below last year's estimated daily average of roughly 1.90 billion. About 1.71 billion shares were traded on Nasdaq - last year's daily average was 2.17 billion.
The US bond market closed early on Monday, ahead of the Veterans Day holiday when it will be shut. The US stock market will be open as normal on Tuesday.
Europe shares end higher
European shares rose on Monday after the announcement of the economic stimulus plan for China.
The FTSEurofirst 300 index of top European shares closed up 0.9% at 922.48 points. It was the eighth day of gains in the last 10 for the index.
Metal prices surged after China approved a huge rise in new government spending and the G20 group of nations pledged to take all necessary steps to put financial markets back on their feet.
China announced a 4 trillion yuan ($US586 billion) spending package on Sunday as well as a shift to "moderately easy" monetary policy.
Commodities were the biggest movers on the index. Oil rose in price by more than 5%. Miners were also higher after copper rose 8.3%.
Across Europe: Germany's DAX was 1.8% higher and France's CAC 40 was up 1%.
In Britain, the FTSE 100 rose 0.9% to end 38.96 points higher at 4,403.92 points.
Banks were the biggest losers: Banco Santander of Spain fell 5% after announcing a rights issue of $US9.2 billion to shore up its capital.
HSBC lost 1.5% after announcing its profits in the nine months to the end of September were lower than the same period of 2007. Profit was down by 28% in the first half.
Food retailers were in the doldrums: Tesco was 5.9% lower after a dip in sales in South Korea, its biggest market outside Britain.
Other markets
Asian markets rose sharply on Monday. The Shanghai Composite Index was up 7.3% higher at 1,874.80.
In Tokyo, the Nikkei 225 stock average closed up 5.8% to 9,081.43, helped by the weaker yen.
The Hang Seng Index in Hong Kong was up 3.39% at 14,726.59.
The Australian share market firmed more than 1.3%. The S&P/ASX200 index was up 56.5 points, or 1.39%, to 4107.8, while the All Ordinaries index rose 53.4 points, or 1.33%, to 4060.
On the Sydney Futures Exchange, the December share price index futures contract added 10 points to 4134 on a volume of 38,946 contracts.
The New Zealand share market closed up, with the NZX 50 46 points, or 1.6%, higher at 2837 on turnover of $41 million.
