| NEW YORK, July 5
NEW YORK, July 5 U.S.-listed shares of overseas
companies traded lower on Tuesday after Moody's Investors
Service downgraded Portugal's debt to junk, sparking fresh
concerns about the financial stability of the euro zone.
European bank shares trading in the United States fell
sharply, with Lloyds Banking Group (LYG.N) shares down 6.3
percent, Deutsche Bank (DB.N) shares sliding 2.7 percent, and
Barclays (BCS.N) shares falling 2.2 percent.
The BNY Mellon index of leading American Depositary
Receipts (ADRs) .BKADR fell 0.5 percent while the U.S.
benchmark S&P 500 index .SPX was down 0.1 percent.
Moody's rating agency on Tuesday cut Portugal's credit
rating by four levels to Ba2, putting it in junk territory,
spurred by increased concerns over the country's ability to
meet its deficit reduction and debt stabilization targets set
out in its loan agreement with the European Union and
International Monetary Fund.
The move renewed worries of a European sovereign-debt
crisis not long after Greece passed a key vote on its own
austerity measures, tempering concerns last week. The BNY
Mellon index of leading European ADRs .BKEUR was down 0.8
percent. U.S.-listed shares of Portugal Telecom PT.N were
down 1.6 percent. In Europe, the FTSEurofirst 300 .FTEU3
index of top shares ended up 0.1 percent.
Portugal's debt downgrade also pressured shares of Chinese
companies trading in the United States. The BNY Mellon index of
leading Asian ADRs .BKAS swung into negative territory after
the rate cut, with the index down 0.1 percent.
Shares of China Finance Online Co Ltd (JRJC.O) fell 3.8
percent. In Asia, shares ended mostly higher, with Chinese
shares reaching a six-week high on Tuesday after a late rally
in utilities and coal-related stocks boosted the broader
Receipts with the BNY Mellon index of leading Latin
American ADRs .BKLA were also down, 0.7 percent. Bancolombia
(CIB.N) shares trading in the United States fell 0.8 percent.
In Latin America, equities fell across the board on Tuesday
after steady gains left stocks vulnerable to profit taking.
(Editing by James Dalgleish)