By Tess Stynes
International companies trading in New York closed lower Monday
as investors weighed an unexpected pickup in U.S. manufacturing
activity against mixed readings for Thanksgiving weekend retail
sales and falling metals prices weighed on mining companies.
Gold and silver fell to the lowest levels in almost five months
on Monday as investors bet that upbeat U.S. manufacturing data may
increase the possibility of an earlier tapering of the Federal
Reserve's bond-buying program, which in turn could lead to weaker
demand for precious metals. Platinum also retreated to a nearly
five-month low.
The Bank of New York index of ADRs fell 0.98% to 148.23. The
European index fell 0.76% to 144.65 and the emerging-markets index
shed 1.8% to 275.85.
Decliners included AngloGold Ashanti Ltd. (AU, ANG.JO), down
6.7% at $12.68; Harmony Gold Mining Co. (HMY,HAR.JO), off 4.9% at
$2.71; and Gold Fields Ltd. (GFI, GFI.JO), which fell 3.5% to
$3.87. Also lower were Anglo American PLC (AAUKY, AAL.LN), down
4.3% at $10.50, and Randgold Resources Ltd. (GOLD, RRS.LN), which
declined 4.9% to $67.29.
The Latin American index declined 3.43% to 281.99. Brazilian
mining company Vale SA (VALE, VALE5.BR) plans to double down on its
efforts to sell assets next year, seeking to further rein in costs
and raise cash amid an uncertain global outlook for commodities.
The world's largest iron-ore producer and No. 3 mining company also
said it expects $14.8 billion in capital expenditures next year,
with the bulk directed toward iron-ore mining. The planned capital
spending figure is down from $15.5 billion in 2013 and $17.7
billion in 2012. Shares fell 2.8% to $14.89.
Shares of Petroleo Brasileiro SA (PBR, PETR3.BR, PETR4.BR), or
Petrobras, slumped Monday after Brazil's government-run oil company
said it would slowly eliminate costly fuel subsidies but didn't
disclose how far or fast the subsidies would be cut. The company's
board late Friday said it would raise gasoline prices by 4% and
diesel by 8% to bring prices in line with international norms, but
failed to provide details on its long-term strategy for regulating
prices. Shares fell 11% to $14.20.
The Asian index was down 0.72% to 148.85. Giant Interactive
Group Inc. (GA) named three of its directors to a special committee
intended to review a nonbinding proposal to take the online-game
company private. Last week, investors including former chief
executive Chairman Yuzhu Shi and Baring Private Equity Asia offered
to acquire the stake they don't already own for $11.75 a share or
American depositary share, a 16% premium at the time. The investors
already own about 47.2% of Giant Interactive. Giant Interactive was
down 0.6% at $11.16.
Write to Tess Stynes at tess.stynes@wsj.com
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