By Anna Prior
International companies trading in New York closed lower
Wednesday amid concerns over global economic growth.
The Bank of New York index of ADRs fell 0.6% to 136.71.
The World Bank said it expects the global economy to expand by
just 2.4% this year, down from its June projection for global
growth of 3%.
The European index dropped 0.5% to 129.20.
Morgan Stanley downgraded Rio Tinto PLC (RIO, RIO.LN) to
equalweight from overweight, saying that Rio's risk/reward ratio no
longer looks attractive enough after a 33% rise in the iron ore
price since December. The investment bank also noted much lower
earnings impact from cost-efficiency programs than headline figures
suggest, and the limited tangible changes form the company's
sharpened focus on capital efficiency. U.S.-listed shares of the
U.K.-based mining heavyweight fell 1.8% to $55.03.
Bucking the downward trend were shares of the U.K. arm of cruise
operator Carnival PLC (CUK, CCL.LN). S&P Equity Research
upgraded Carnival to strong buy from buy, saying it is increasingly
confident that cruise demand will rise to pre-Concordia levels in
fiscal-year 2013. Shares rose 1.2% to $40.04.
The Asian index declined 0.8% to 133.67.
Shares of India-based auto manufacturer Tata Motors Ltd. (TTM,
500570.BY) fell 1.5% to $29.93 as the European Automobile
Manufacturers' Association Wednesday warned that demand for new
cars in the European Union might shrink by about 5% in 2013 after
falling 8.2% last year, as Europe's economic malaise continues to
sap demand. The warning came a day after reported disappointing
December global vehicle sales.
The Latin American index edged down 0.2% to 341.45 and the
emerging markets index fell 0.3% to 297.42.
Concerns about China, which is Brazil's largest trading partner,
hit shares of the country's exporters. China will release gross
domestic product Friday after reporting a downturn in
foreign-direct investment in December. Shares of mining giant Vale
SA (VALE, VALE3.BR, VALE5.BR), the world's largest iron ore
producer and second-biggest nickel mining company, fell 1.5% to
$19.95. Chinese steelmakers are Vale's biggest customers.
Chilean airline group Latam Airlines Group SA (LFL, LAN.SN) said
system passenger traffic increase 10% in December compared to the
year-ago period, as capacity rose 7.4%. Shares rose 1.6% to
$24.57.
Write to Anna Prior at anna.prior@dowjones.com