November 7, 2012 / 9:00 PM / 5 years ago

ADR REPORT-European ADRs fall on bleak euro-zone outlook

NEW YORK, Nov 7 (Reuters) - U.S.-listed shares of European companies tumbled on Wednesday on bleak forecasts on the euro zone’s economy.

The European Commission said the region’s economy will barely grow next year, but pick up in 2014, forecasting slower growth than the governments of all the euro zone’s biggest economies expect.

Adding to investors’ anxiety, fiscal problems in the United States eclipsed initial relief over President Barack Obama’s re-election.

The BNY Mellon index of leading American depositary receipts fell 1.5 percent, while the benchmark Standard & Poor’s 500 index was down 1.9 percent.

The BNY Mellon index of leading European ADRs lost 1.6 percent.

In early morning trade in Europe, the FTSEurofirst 300 hit a two-week high as the Obama victory increased optimism that the U.S. Federal Reserve would maintain its loose monetary policy. But European shares gave up those gains after the European Commission’s bleak forecast, which triggered a long slide into the close for European indexes.

U.S.-traded shares of European banks were among the hardest hit. Barclays PLC fell 2.8 percent to $15.11, and Credit Suisse slid 3.9 percent to $23.26. Deutsche Bank dropped 4 percent to $44.23.

The BNY Mellon index of leading Asian ADRs lost 1.3 percent. The BNY Mellon index of leading Latin American ADRs fell 1.4 percent.

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