ADR REPORT-Shares edge higher, but China data weighs
NEW YORK |
NEW YORK Oct 18 (Reuters) - Overseas shares traded in the United States edged higher on Tuesday as investors returned to the battered banking sector, though enduring concerns about Europe's debt crisis and Chinese growth kept a cap on gains.
Better-than-expected U.S. bank earnings fueled advances in financials. Bank of America surged after posting a profit that topped consensus forecasts while Goldman Sachs said it was moving to cut costs. The stock rose 2.2 percent.
Overseas, Barclays Plc rose 1.3 percent to $11.12 while Deutsche Bank gained 1.4 percent to $36.51. Both have fallen about 30 percent so far this year, suffering because of the ongoing sovereign debt situation in Europe
Concerns about the debt crisis continued after Moody's cautioned it may slap a negative outlook on France's Aaa credit rating in the next three months if costs from helping to bail out banks and other euro zone members stretch its budget too thin.
The BNY Mellon index of leading American Depositary Receipts rose 0.2 percent after falling almost 2 percent in Monday's session. The BNY Mellon index of leading European ADRs was also 0.2 percent higher, far outpaced by the gains in the S&P 500 , which rose 1.1 percent.
The BNY Mellon index of leading Asian ADRs was flat after data showed that China's growth slowed in the third quarter to its weakest pace since early 2009. Hong Kong and Shanghai shares both tumbled in thin trade following the data.
The Chinese data also pressured material names, which dropped on the prospect of lower demand from the country. Aluminum China lost 5.7 percent to $11.90 while European miner Rio Tinto fell 1.9 percent to $50.13.
The weakness in miners pressured the FTSEurofirst 300 index of top shares, which ended 0.4 percent lower.
The BNY Mellon index of leading Latin American ADRs gained 1.2 percent even as Latin American shares fell over concerns related to China and Europe. The index was lifted by strength in telecom shares, with Brasil Telecom up 7.4 percent to $19.79 and Tele Norte Leste Participacoes S.A. up 6.3 percent to $10.37.
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