ADR Report-Credit, global growth worries weigh down ADRs
NEW YORK, Aug 25 (Reuters) - Overseas shares traded in the United States fell on Monday, as overhanging anxiety about credit and slowing global growth curbed appetite for equities.
The Bank of New York Mellon's index of leading American Depositary Receipts (ADRs) .BKADR fell 1.3 percent while the 30-share Dow Jones industrial average .DJI stumbled almost 2 percent in early afternoon trading.
The enthusiasm for financial shares late last week dissipated after a top South Korean regulator voiced concern about state-run Korea Development Bank's [KDB.UL] interest in buying a global bank. On Friday, KDB said U.S. investment bank Lehman Brothers LEH.N , which has been battered by the credit crisis, was one of its options for an acquisition.
Among European banks traded in the United States, shares on Deutsche Bank AG (DB.N) were down 2.6 percent at $83.43, while Credit Suisse's (CS.N) stock slipped 1.3 percent to $45.45.
Japanese financials fared somewhat better, but they reflected gains in Tokyo prior to the news about the South Korean regulator's concern about a possible bank purchase by KDB.
Mitsubishi UFJ Financial's stock (MTU.N) was up 0.1 percent at $7.46, and Mizuho Financial Group (MFG.N) shares were down 0.5 percent at $8.21.
While renewed jitters hammered financial shares, oil and mining sectors succumbed to nervousness from slowing demand for oil and other commodities.
The International Monetary Fund pared its forecasts for global economic growth for 2008 and 2009, a G2 financial official told Reuters on Monday.
The IMF downgraded its 2008 world growth outlook to 3.9 percent from 4.1 percent earlier and its 2009 estimate to 3.7 percent from an earlier 3.9 percent. See [ID:nLP653410]
Oil prices CLc1 were choppy, swinging in and out of negative territory between worries about falling demand and concerns about tightening supply.
New York-traded shares of mega-energy company British Petroleum (BP.N) were down 0.7 percent at $56.75 and ADRs of Royal Dutch Shell (RDSa.N) were down 2 percent at $68.21.
On a regional basis, U.S.-traded shares of Latin American companies posted the steepest decline.
Receipts with the Bank of New York Mellon's index of leading Latin American ADRs .BKLA slid 2 percent.
Brazilian blue-chips such as Petrobas (PBR.N) were down 3.4 percent and Vale RIO.N was off 2.8 percent.
ADRs of Mexican wireless phone provider America Movil SAB (AMX.N) slipped 1.6 percent, while those of Mexican cement producer (CX.N) fell 1.8 percent. Continued...
