ADR Report: Shares Lower As China Cuts Growth Target
March 05 2012 - 5:26PM
Dow Jones News
International companies trading in New York closed lower Monday,
in line with the broader market, as China cut its economic growth
target and data showed euro-zone business activity contracted more
than initially thought.
The Bank of New York index of ADRs declined 0.8% to 131.30 as
resource stocks tumbled after China, a large consumer of natural
resources, cut its economic growth target to 7.5% for 2012 after
keeping it at 8% for the past eight years.
Mechel OAO (MTL, MTLR.RS) fell 5.6% to $10.56, Rio Tinto PLC
(RIO, RIO.LN) dropped 3.9% to $54.23 and BHP Billiton PLC (BBL,
BLT.LN) ended down 2.4% at $62.65.
The Latin American index and the emerging markets index lost
1.8% to 381.16 and 1.8% to 312.84, respectively, as Brazil
resources companies also fell on news of a China slow down. China
is Brazil's biggest trading partner and Brazil's key exports
include iron ore.
Vale SA (VALE, VALE5.BR), the world's largest iron ore supplier,
traded down 3.7% to $24.74. Steel producer Gerdau SA (GGB,
GGBR4.BR) declined 2.2% to $10.36.
The European index lost 0.3% to 120.26 as Italy and Spain both
contracted faster in February than in January, suggesting that
growth for those countries looks to be a long way off.
Shares of Spanish banks Banco Bilbao Vizcaya Argentaria SA
(BBVA, BBVA.MC) fell 1.9% to $8.85 and Banco Santander SA (STD,
SAN.MC) lost 2.1% to $8.22.
The Asian index fell 1.4% to 128.53.
Tumbling natural-gas futures are weighing today on the energy
sector as natural-gas futures flirted with 10-year lows on
expectations that warmer-than-usual weather will persist across
much of the U.S. this month. Coal companies took a hit as low
natural-gas prices are liable to only hasten the switch of power
plants to that fuel instead of coal. Shares of Yanzhou Coal Mining
Co. (YZC, K3GD.SG, 600188.SH, 1171.HK) shed 4.5% to $23.37.
-By Corrie Driebusch, Dow Jones Newswires; 212-416-2143;
corrie.driebusch@dowjones.com
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