Moody's cuts Hungary's sovereign rating two notches to Baa3, just above "junk" grade, and warned of further cuts if the government fails to put public finances on a sustainable footing. The move was somewhat expected, but the two-notch slash took some economists by surprise, and sent the forint, government bonds, and stocks lower.
If you wonder why the market is trending lower ... xlf is leading the decline.
Euro zone finance ministers were set to meet amid pressure to increase the size of a 750 billion euro ($1,006 billion) safety net for debt-stricken members. But Germany rejected any such move.