By Anna Prior
International companies trading in New York closed lower
Thursday amid a batch of data on the U.S. economy that fell short
of expectations and concerns that the Federal Reserve might slow
down its stimulus efforts.
The Bank of New York index of ADRs fell 0.9% to 141.29.
Among a series of reports on the U.S. economy, initial claims
for jobless benefits rose more than forecast last week, while
claims for the prior week were revised higher by 5,000. Also on the
data front, construction of new homes in the U.S. sank last month,
with overall housing starts falling by 16.5%, against an
anticipated decline of 6.4%.
Additionally, Federal Reserve Bank of San Francisco President
John Williams said he is open to trimming the central bank's
bond-buying program in coming months if the economy continues to
improve. The comments stoked fears of the Fed tapping the brakes on
its stimulus efforts.
The European index lost 0.5% to 133.28.
Financial stocks contributed to the decline, with Spain's Banco
Bilbao Vizcaya Argentaria SA (BBVA, BBVA.MC) falling 1.5% to $9.51,
Germany's Deutsche Bank AG (DB, DBK.XE) down 1.6% to $46.66, and
Switzerland's UBS AG (UBS, UBSN.VX) down 1.5% to $18.04.
Bucking the downward trend however were the U.K.'s Royal Bank of
Scotland Group PLC (RBS, RBS.LN) and Lloyds Banking Group PLC (LYG,
LLOY.LN), which both posted gains. Britain's part state-owned banks
continued their efforts to shed government support, as Lloyds
forecast a return to profit this year and RBS said it would cut
more jobs. RBS shares rose 3.3% to $9.71, while Lloyds shares
climbed 2.2% to $3.72.
Shares of U.K. insurer Aviva PLC (AV, AV.LN) also rallied 6.4%
to $10.55 after the company posted an 18% rise in the value of new
business in the first quarter.
The Asian index shed 1.8% to 145.17.
ReneSola Ltd. (SOL) reported a slightly narrower first-quarter
loss as the China-based solar-products maker reported stronger
revenue and lower operating expenses. The company expects revenue
above analysts' estimates for the current quarter. However, for the
first quarter, the company's loss was still wider than expected.
Shares fell 13% to $1.92.
Shares of Mumbai-based Tata Communications Ltd. (TCL, 500483.BY)
fell a day after the company said it will apply to the U.S. markets
regulator before the end of this month to delist its American
Depositary Receipts from the New York Stock Exchange. Managing
Director Vinod Kumar said the "ADR program had not developed the
trading volumes or liquidity we had initially hoped when we
listed." Shares fell 3.5% to $8.27.
The Latin American index dropped 0.5% to 319.77 and the emerging
markets index fell 0.7% to 281.45.
Gold prices declined amid an industry report and disclosures of
scaled-back bets by some hedge funds, which indicate investors'
interest in the precious metal is ebbing. Shares of some South
African gold miners closed lower, including Drdgold Ltd. (DRD,
DRD.JO), which fell 1.5% to $6.00, and AngloGold Ashanti Ltd. (AU,
ANG.JO), which fell 0.9% to $17.55.
Write to Anna Prior at anna.prior@dowjones.com