By Mia Lamar
International companies trading in New York closed lower
Tuesday, dragged down by weakness in mining stocks.
The Bank of New York index of ADRs fell 0.3% to 135.33.
Mining stocks were hurt after Goldman Sachs cut its iron-ore
price outlook for 2013, 2014 and 2015 by 8% on average.
The investment bank also said it sees the iron-ore market
entering "a structural surplus in 2014 as slower growth in Chinese
steel production coincides with increases in seaborne iron ore
supply and domestic Chinese iron ore production."
Shares of Brazilian miner Vale S.A (VALE, VALE5.BR), the world's
largest producer of iron ore by output, fell 2.6% to $16.98. Rio
Tinto PLC (RIO.LN, RIO) shares fell 4.9% to $46.88 while rival BHP
Billiton PLC (BBL, BLT.LN) lost 3.2% to $59.84.
The Latin American index fell 0.7% to 324.13 and the
emerging-markets index shed 0.8% to 279.17.
Brazilian steel companies were also down. Shares of Companhia
Siderurgica Nacional (SID, CSNA3.BR) fell 4.5% to $4.69 and Gerdau
SA (GGB, GGBR3.BR, GGBR4.BR) fell 2% to $7.45.
Mexico's Desarrolladora Homex (HXM, HOMEX.MX) was caught in a
broader selloff of the country's home builders, falling 9.8% to
$10.10. Euphoria over the government's plan to shore up financing
for the sector is definitely over, a Mexico-based trader at a major
brokerage told Dow Jones Newswires.
The Asian index fell 0.5% to 135.30.
Chinese solar companies were mostly lower for the
second-straight session after Suntech Power Holdings Co. (STP,
K3ND.SG) defaulted on a $541 million bond payment.
The China-based company, whose shares are listed in the U.S.,
was scheduled to repay foreign investors for the bonds Friday. But
Suntech, which has faced shrinking profit during difficulty in the
solar-panel market, didn't make the payment on the 3% convertible
notes.
Shares fell 8.6% to 59 cents Tuesday, adding to an 8.4% decline
in the previous session. Shares of JA Solar Holdings Co. (JASO)
fell 5% to $4.16 and ReneSola Ltd. (SOL) lost 2.2% to $1.76.
The European index fell 0.1% to 127.71.
Warren East, chief executive of ARM Holdings PLC (ARMH, ARM.LN),
the microchip designer whose technology powers most smartphones
including Apple Inc.'s (AAPL) iPhone, is stepping down after
presiding over a 12-year period of dramatic growth. Shares closed
1.7% lower at $40.73.
Write to Mia Lamar at mia.lamar@dowjones.com