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Future Extend Losses on Fresh Euro Zone Fears

CNBC.com
Friday, 13 Jan 2012 | 9:24 AM ET

Futures added to their losses Friday amid worries over a possible downgrade of several euro zone countries by the S&P and after JPMorgan posted earnings that missed on revenue outlook.

JPMorgan posted profits that met expectations, but shares fell after the banking giant missed on revenue. The bank is the first major financial to post earnings. Rivals Citigroup , Wells Fargo , BofA and Morgan Stanley among others are slated to post next week.

In Europe, several euro zone countries could face "imminent" downgrade by credit rating agency Standard & Poor's, according to a senior euro zone government source. While the sources did not specify which countries will be affected, Germany is not included on the list.

The euro extended losses against the U.S. greenback, hitting a session low.

Italy successfully sold the maximum planned amount in 3-year bonds on Friday and saw yields fall. Demand for the sale was relatively weak however. The auction follows positive auctions for both Spain and Italy on Thursday.

Key markets in Asia ended higher on Friday, boosted by successful bond auctions in Europe on Thursday.

On the economic front, the trade deficit totaled $47.8 billion, widening in November to its largest in five months, according to the Commerce Department. Analysts expected a deficit of $45.0 billion.

Meanwhile, the University of Michigan’s January Consumer Sentiment Index is out at 9.55 am ET and is forecast to show a reading of 71.2.

Bank of America has informed U.S. regulators that it is willing to pull back from some parts of the country if its financial problems worsen, according to reports.

McDonald's has extended its sponsorship of the Olympic Games for a further eight years in a move which it hopes will help the company boost its presence in fast-growing economies, with the 2014 Winter Games to be held in the Russian city of Sochi and the 2016 summer Games in Rio de Janeiro in Brazil.

Swiss drug maker Novartis said it is cutting nearly 2,000 jobsin the U.S. ahead of the patent loss of its top-selling blood pressure drug Diovan.

And in China, angry shoppers pelted Apple’s flagship store in Beijing with eggs when customers were told the store would not begin sales of the iPhone 4S as scheduled.

—Follow JeeYeon Park on Twitter: twitter.com/JeeYeonParkCNBC

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