By Mia Lamar
International companies trading in New York closed higher
Tuesday, supported by comments from a European Central Bank
official that the debt-scarred euro zone must form a banking
union.
The Bank of New York index of American depositary receipts, or
ADRs, rose 1.8% to 114.62 as financial companies ended broadly
higher. Spanish bank stocks reversed declines suffered Monday on
skepticism over the country's planned bailout of its flagging
banking sector.
Banco Santander SA (STD, SAN.MC) added 2.2% to $6.05 and Banco
Bilbao Vizcaya Argentaria SA (BBVA, BBVA.MC) gained 2.4% to
$6.47.
The Asian index rose 1.7% to 113.81. Solar companies were among
the biggest gainers after U.S.-based First Solar Inc. (FSLR) said
it was boosting production at a German plant amid a surprise jump
in demand.
Trina Solar Ltd. (TSL, K3KD.SG) ended 8.3% higher at $6.64,
Yingli Green Energy Holding Co. (YGE) climbed 5.4% to $2.74 and
Suntech Power Holdings Co. (STP, K3ND.SG) rose 7.4% to $1.74.
The European index rose 1.9% to 106.12 after ECB Vice President
Vitor Constancio said a Europewide program to guarantee bank
deposits should be one part of a euro-zone banking union.
Banks across the less visibly distressed parts of Europe also
benefited from Constancio's comments. France's Societe Generale SA
(SCGLY, GLE.FR) rose 2.2% to $4.22 while BNP Paribas SA (BNPQY,
BNP.FR) added 1.7% to $17.70. Barclays PLC (BCS, BARC.LN) in the
U.K. rose 2.3% to $11.95 and Germany's Deutsche Bank AG (DB,
DBK.XE) tacked on 1.4% to $35.43.
The Latin American index rose 1.5% to 303.97 and the
emerging-markets index rose 1.8% to 262.71.
Fibria Celulose SA (FBR, FIBR3.BR), Brazil's largest producer of
pulp, late Monday reported it has concluded renegotiations of
covenants with its creditors, increasing leverage limits. Fibria
shares trading in New York on Tuesday closed 2.8% higher at
$6.18.
Mexican mobile giant America Movil (AMX, AMX.MX) increased its
stake in Dutch telecommunications firm Royal KPN NV (KPN.AE) to
7.3% from about 5%. The raised investment is separate from America
Movil's 2.64 billion euro ($3.30 billion) tender offer for up to
28% of Royal KPN. America Movil put forth the offer to gain a
foothold in Europe, yet has thus far been rebuffed by the company's
management. Shares of America Movil rose 3.2% to $24.23.
Write to Mia Lamar at mia.lamar@dowjones.com