ADR REPORT-Overseas shares rise for third day
NEW YORK |
NEW YORK Aug 7 (Reuters) - U.S.-listed shares of foreign companies rose for a third day on Tuesday on investor bets that major central banks will step up economic stimulus efforts soon.
The president of the European Central Bank, Mario Draghi, boosted hopes last week when he spoke of restoring calm to the euro zone's troubled bond markets. Since then, good news from Greece and declines in borrowing costs for Spain and Italy from peaks above 7 percent have kept sentiment positive.
The BNY Mellon index of leading American depositary receipts rose 0.9 percent, hitting a three-month high, while the Standard & Poor's 500 index added 0.5 percent.
U.S. stocks also rose for a third straight day on Tuesday, pushing the S&P above 1,400 for the first time since early May. Trading was light, however. Some analysts see heavy volumes as a confirmation of a move in either direction.
Shares in Nokia gained 5.6 percent to $2.65 on speculation that the Finnish mobile phone maker could launch new smartphones in early September before Apple unveils a next version of its iPhone.
"There has been a lot of speculation about new device launches, what Nokia will unveil on Sept. 5," said Nordea analyst Sami Sarkamies.
The BNY Mellon index of leading European ADRs added 1.1 percent, while the FTSEurofirst 300 index of top European shares closed up 0.8 percent to their highest level in more than four months.
In Europe, firmer oil stocks and the surge in Nokia offset a slump in Standard Chartered a day after New York's top bank regulator accused the UK bank of hiding billions of dollars in transactions tied to Iran.
Shares of Standard Chartered, which is not traded in the United States, fell 16.4 percent in London.
Rio Tinto, the world's second-largest iron ore producer, is expected to stick with its spending plans when it announces first-half results on Wednesday, even as profits fall sharply on lower prices and softer Chinese demand. The shares rose 0.6 percent to $48.81.
The BNY Mellon index of leading Asian ADRs rose 0.8 percent and the BNY Mellon index of leading Latin American ADRs added 0.2 percent. (Reporting By Edward Krudy; Editing by Leslie Adler)
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