International stocks trading in New York closed lower on Monday.
The Bank of New York index of American depositary receipts fell
0.8% to 153.68. The European index increased 0.5% to 151.64, the
Asian index dropped 1% to 149.42, the Latin American index fell 2%
to 292.76 and the emerging markets index declined 1.7% to 298.61.
Among the companies with shares that actively traded was OAO Mechel
(MTL, MTLR.MZ).
Shares in Russia's OAO Mechel fell after the country's economy
minister said he thought bankruptcy was "a probable scenario" for
the metals and mining group as pressure mounts on the company to
repay rather than restructure its heavy debt burden. The comment
from Alexei Ulyukayev, reported by the Interfax news agency, came
after it emerged that Mechel had opposed a proposal by its three
largest lenders, VTB, Sberbank, and Gazprombank, to convert part of
the company's debt into shares. Mechel fell nearly 30% to
$1.02.
Continued weakness in iron-ore prices had Vale SA (VALE,
VALE3.BR, VALE5.BR, VALE5.FR) shares at the lowest levels since the
aftermath of the financial crisis on Monday. The Brazilian mining
company's biggest market, China, doesn't appear set to notably
change course as China's finance minister isn't planning to
drastically change economic policy despite slowing growth that has
weakened commodities prices. Vale shares fell 4.7% to $11.44. Other
mining companies whose shares declined on Monday included Rio Tinto
(RIO, RIO.AU, RIO.LN), whose shares dropped 2.9% to $50.17; BHP
Billiton PLC (BBL, BLT.LN), whose shares declined 3.1% to $56.83
and BHP Billiton Ltd. (BHP, BHP.AU), whose shares fell 3.2% to
$61.28.
Write to Tess Stynes at tess.stynes@wsj.com
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