By Anna Prior
International companies trading in New York closed lower Tuesday
as recent solid data sparked more concerns that the Federal Reserve
might scale back its bond-buying program in the near future.
The Bank of New York index of American depositary receipts fell
0.7%, to 147.23.
Investors are eyeing the U.S. jobs report expected Friday, after
the Institute for Supply Management said Monday its manufacturing
index rose to its highest reading since April 2011. This triggered
more fears that the Fed could start tapering soon.
Meanwhile, in Europe, the European Union's statistics agency
said the October producer prices for the euro zone fell 0.5% on the
month, and were down 1.4% on the year, the fastest annual rate of
decline in almost four years. That sparked fear that deflationary
pressures could threaten the fragile recovery in Europe, according
to The Wall Street Journal.
The European index dropped 0.7%, to 143.64.
Nomura downgraded HSBC Holdings PLC (HSBC, HSBA.LN, 0005.HK) to
neutral from buy, saying the stock remains a "boring" story
compared with other high-beta names. While regulation is a risk for
all U.K. banks, Nomura said it sees it as the main headwind to the
dividend story at HSBC. Shares fell 0.8%, to $55.09.
Novo Nordisk A/S (NVO, NOVO-B.KO) said it expects to file for
U.S. regulatory approval for its new obesity drug "within weeks"
with hopes of getting approval within a year, a move the Danish
drug giant hopes will help diversify a product portfolio largely
aimed at people suffering from diabetes. Shares rose 0.9%, to
$179.51.
The Asian index declined 0.5%, to 148.06.
Chinese solar stocks added to losses, with LDK Solar Co. (LDK)
dropping 7.3%, to $1.39, Hanwha SolarOne Co. (HSOL) down 3.5%, to
$3.30 and ReneSola Ltd. (SOL) down 1.8%, to $4.38.
The Latin American index dropped 0.8%, to 279.74, and the
emerging market index slipped 0.5%, to 274.35.
Shares of South African gold miners fell as gold prices slipped.
Drdgold Ltd. (DRD, DRD.JO) shares fell 7.9%, to $3.60, while
Harmony Gold Mining Co. (HMY, HAR.JO) dropped 3.7%, to $2.61,
AngloGold Ashanti Ltd. (AU, ANG.JO) slipped 2.4%, to $12.37 and
Gold Fields Ltd. (GFI, GFI.JO) decreased 2.1%, to $3.79.
However, shares of Mechel OAO (MTL, MTLR.RS) rose as the Russian
mining and metals company said it reached an agreement to extend
the grace period and maturity of its $1 billion syndicated loan
agreement with international lenders to the end of 2014 and 2016,
respectively. Shares rose 8.6%, to $2.14.
Write to Anna Prior at anna.prior@wsj.com