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ADR REPORT-Foreign shares fall on "fiscal cliff" stumble
December 21, 2012 / 7:10 PM / in 5 years

ADR REPORT-Foreign shares fall on "fiscal cliff" stumble

NEW YORK, Dec 21 (Reuters) - U.S.-listed shares of foreign companies fell on Friday after a plan to avert the “fiscal cliff” failed to gain support, denting optimism a deal was on the horizon.

A proposal from Speaker of the U.S. House of Representatives John Boehner to avoid the fiscal cliff failed to get support from his Republican party on Thursday, putting fresh doubt around negotiations to avoid automatic tax hikes and spending cuts that start to kick in in January and which could push the U.S. economy back into recession.

Adding to the pessimism, Boehner said on Friday congressional leaders and President Barack Obama must try to move on from the Republicans’ failed tax plan.

Both the BNY Mellon index of leading American depositary receipts and the Standard & Poor’s 500 index lost 1 percent.

Bank stocks, which have seen their performance closely tied to the progress in negotiations, declined. Shares of Credit Suisse lost 2.8 percent to $24.61 while Deutsche Bank fell 2.5 percent to $43.65 in New York trade.

The BNY Mellon index of leading European ADRs dropped 1 percent, while the FTSEurofirst 300 index of top shares closed down 0.3 percent.

The BNY Mellon index of leading Asian ADRs lost 1 percent.

The BNY Mellon index of leading Latin American ADRs fell 0.7 percent, with economically sensitive commodity stocks bearing the brunt of the declines. Iron-ore mining giant Vale SA shed 1.8 percent to $20.10 while state-controlled oil producer Petroleo Brasileiro SA dropped 2.6 percent to $20.04.

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