ADR REPORT-Foreign shares advance after Fed statement, data
NEW YORK |
NEW YORK Jan 30 (Reuters) - U.S.-listed shares of foreign companies edged higher on Wednesday after the Federal Reserve said it would keep its stimulus plans in place and data showing the U.S. economy unexpectedly contracted in the fourth quarter.
The statement from the Fed keeping its bond-buying plan in place confirmed expectations stoked by data earlier on Wednesday showing gross domestic product fell at a 0.1 percent annual rate and weakened the dollar.
The softer dollar helps increase the appeal of assets priced in the greenback such as ADRs to investors as they become cheaper to purchase.
The BNY Mellon index of leading American depositary receipts advanced 0.13 percent, while the Standard & Poor's 500 index shed 0.13 percent.
The BNY Mellon index of leading European ADRs climbed 0.22 percent, while the FTSEurofirst 300 index of top shares closed down 0.57 percent.
The BNY Mellon index of leading Asian ADRs gained 0.3 percent, helped by a 5.1 percent climb in Canon Inc to $38.14 after the exporter said it expects a 26.6 percent rise in operating profit this year as it cuts costs and gets a boost to revenues from a weakening yen.
On the downside, shares of Korea Electric Power traded in New York fell 4.9 percent to $14.86 as its chief executive dampened hopes of a further hike in electric fees this year after the power supplier raised prices by 4 percent from Jan. 14.
The BNY Mellon index of leading Latin American ADRs dropped 1.2 percent, weighed down by a 5.2 percent drop in Petrobras to $18.47 after Brazil's state-run oil company announced a price hike that was less than hoped.
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