By Anna Prior
International companies trading in New York closed lower
Thursday amid concerns about what stronger-than-expected U.S.
growth could mean for Federal Reserve policy.
The Bank of New York index of ADRs fell 1.7% to 146.26.
Better-than-expected U.S. third-quarter gross domestic product
figures added to concerns that the Fed might begin scaling back its
$85 billion-a-month asset purchases sooner than expected.
Meanwhile, the European Central Bank cut its benchmark interest
rate to 0.25% from 0.5%.
The European index dropped 1.6% to 142.13.
Italy's Telecom Italia SpA (TI, TIA, TIT.MI) said its
third-quarter net profit fell more than 27% compared with the same
period last year, while it posted a net loss of 902 million euros
($1.2 billion) because of a previously announced write-down of
around EUR2.2 billion. The company also said the board approved a
mandatory convertible bond of a maximum EUR1.3 billion due November
2016. Shares fell 5.1% to $9.48.
However, ArcelorMittal SA (MT, MT.FR, MT.AE), the world's
largest steelmaker, narrowed its loss in the third quarter and said
it was "cautiously optimistic" about prospects for 2014 as steel
demand picks up in China, the U.S. and even Europe. Shares of the
Luxembourg-based company rose 2.5% to $16.59.
West Africa gold producer Randgold Resources Ltd. (GOLD, RRS.LN)
reported a drop in third-quarter profit despite increased
production, as lower gold prices hit earnings. But the bottom line
still beat expectations. Shares of the U.K.-based gold miner rose
4% to $77.24.
The Asian index tumbled 1.9% to 146.03.
The New York Stock Exchange said Thursday that Suntech Power
Holdings Co.'s (STP, K3ND.SG) shares will be delisted before the
start of trading Monday. The reason for the delisting is
"uncertainty" over whether Suntech can complete its 2012 annual
report on time "in light of the ongoing restructuring involving the
company." A Suntech spokesman declined to comment on the delisting
to The Wall Street Journal. Shares fell 30% to 88 cents.
Meanwhile, fellow Chinese solar company, China Sunergy Co.
(CSUN) said while there were many positive takeaways in the second
quarter, Chinese banks "significantly tightened credit facilities
to solar companies, which caused us to face a constrained working
capital and reduced our ability to procure adequate inventory for
subsequent production." As such, the company said it expects lower
shipment volume and profitability for the third quarter of 2013 and
expects lower total shipment for the full year 2013. Shares fell
24% to $7.17.
The Latin American index fell 2.3% to 291.28 and the emerging
markets index shed 1.9% to 275.15.
Brazilian mining giant Vale SA's (VALE, VALE3.BR, VALE5.BR) net
profit more than doubled in the third quarter on the back of strong
iron-ore production and rebounding prices, a positive sign from the
mining world's third-biggest player by market capital and revenue,
after some two years of declining results. However, shares fell
5.2% to $16.18 amid investor concerns that China may tighten credit
after a once-in-a-decade meeting of Chinese leaders this
weekend.
Write to Anna Prior at anna.prior@wsj.com