Markets retreat on news of downgrade of 34 Italian banks

February 10, 2012 – ITALY – Stocks added to losses Friday, on track to logging their worst session this year, after stalled debt negotiations in Greece, some disappointing economic news and reports that S&P downgraded a handful of Italian banks. In the latest round of disappointment from the euro zone, ratings agency S&P downgraded 34 of 37 Italian banks, citing worries over the banking industry and economic risks in the country. Euro zone finance ministers said the debt-ridden nation will need to make further cuts in order to be granted bailout funds. Meanwhile, Greek workers went on strike, protesting against the austerity measures. Meanwhile, Greece’s Deputy Foreign Minister Marilisa Xenogiannakopoulou, a member of the socialist party, resigned in protest against the tough bailout terms, according to the state television. Adding to woes, Chinese January trade data fell the most since the depths of the financial crisis, signaling further demand decline. –CNBC http://www.cnbc.com/id/46341006