Stocks in Europe fall on Greek news (MarketWatch) (27-01-2012)

LONDON — European stocks left back gains after Greece and its private creditors met again to negotiate a debt-swap deal. U.S. housing data also disappointed investors.

The Stoxx 600 index shed 0.4% to 256.96, pulling back from Thursday’s five-month high. The FTSE 100 index lost 0.6% to 5,759.19 in London, while the French CAC 40 index was 0.6% lower at 3,342.65.

In Germany, the DAX 30 index slipped 0.3% to 6,520.18.

European banks reversed a rally from Thursday as Banca Monte dei Paschi di Siena SpA posted the biggest loss in the Stoxx 600 and dropped 3.5%, while Raiffeisen Bank International AG fell 2.2%, Commerzbank AG shook off 2.4% and Societe Generale SA edged down 2.9%.

French banks Credit Agricole SA and BNP Paribas SA were both downgraded at J.P. Morgan Cazenove.

Credit Agricole SA was cut to underweight from neutral because of its high exposure to Greece and dropped 3.3%, while BNP Paribas SA was cut to neutral, shedding 2.9% in Paris.

Source: MarketWatch