Clock ticking as Italy searches for earthquake survivors

By Silvia Aloisi and Antonella Cinelli

L'AQUILA, Italy (Reuters) - Rescuers picked through rubble for a third night searching for survivors of an earthquake that killed 272 people in Italy, but acknowledged hopes were fading as every hour passed.

A series of aftershocks rattled the medieval mountain city of L'Aquila and nearby villages, complicating rescue efforts and terrifying survivors -- 17,000 of whom stayed in tent villages for another cold night after being made homeless.

"This city has been annihilated and I don't think we'll ever go back to that house, our house. It's full of ghosts and fear," said Claudio Gaudieri, 53, sitting in a tent camp in L'Aquila.

His wife sobbed on the phone, and Guadieri held her hand.

"We lost everything," he said.

The death toll climbed to 272 after rescuers pulled more bodies from the collapsed buildings. Relatives began holding private funerals for the dead.

A mass state funeral and a national day of mourning are expected to be held on Friday.

At least 16 children, including a five-month-old baby, were killed by Monday's 5.8 to 6.3 magnitude earthquake.