International companies trading in New York closed lower Wednesday, in line with the broader market, on continued concern over the future of the euro zone.

The Bank of New York index of ADRs tumbled 1.3% to 120.74.

Spanish banks fell on news reports that an effective nationalization of the troubled lender Bankia SA (BKIA.MC) was imminent.

Banco Santander SA (STD, SAN.MC) dropped 5.7% to $6.01 and Banco Bilbao Vizcaya Argentaria SA (BBVA, BBVA.MC) fell 5.5% to $6.48.

Other banks throughout the region also declined, with Societe Generale SA (SCGLY, GLE.FR) off 4.6% at $4.33 and BNP Paribas SA (BNPQY, BNP.FR) 3.6% lower at $18.37.

The European index lost 1.8% to 110.76.

Nokia Corp.'s (NOK, NOK1V.HE) shares fell 4.3% to $3.15 Wednesday. Bernstein said it sees high risks for the company's financial results in the second half. The research firm recently performed a mystery shopping exercise at U.K. retail points, and concluded that retail channels are pessimistic about further development of Nokia's Lumia devices.

ABB Ltd. (India) (500002.BY) Wednesday reported a surprise drop in net profit for the first quarter because of a foreign-exchange loss. Sales and new order inflows also fell a tad at the Indian unit of Swiss engineering conglomerate ABB Ltd. (ABB, ABB.SK, ABBN.VX) due to what the company called a "challenging market environment." The conglomerate's shares declined 2.1% to $17.20.

The Asian index declined 0.3% to 121.23.

State-owned PT Telekomunikasi Indonesia (TLK, TLKM.JK) has submitted a bid to buy undersea cable operator Pacnet Ltd., in a deal that could value Pacnet at about $1 billion including debt, the Reuters news agency said Tuesday on its website, citing unnamed sources. Shares of Telkom fell 3.6% to $34.72.

The Latin American index dropped 1.5% to 331.02 and the emerging markets index ended 1.2% lower at 282.04.

Gol Linhas Aereas Inteligentes (GOL, GOLL4.BR) could lay off more employees after cutting 131 jobs earlier this year, the union representing flight staff said Wednesday. This strategy is long-term and may not produce better results in the next quarter, though, said UBS. Shares of the airline fell 6.9% to $5.17.

-By Corrie Driebusch, Dow Jones Newswires; 212-416-2143; corrie.driebusch@dowjones.com