ADR Report-Foreign shares slide on stronger dollar, economy

Mon Jun 22, 2009 10:54pm BST
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By Rodrigo Campos

NEW YORK, June 22 (Reuters) - Wall Street-traded shares of foreign companies suffered their worst day in two months on Monday as risk aversion lifted the dollar, drying up appetite for equities traded in the U.S. currency.

The greenback rose in part after the World Bank said prospects for the global economy remain "unusually uncertain," and cut its 2009 growth forecasts for most economies. Uncertainty curbs risk appetite and can drive up investments seen as safe-havens, like the dollar.

The ICE Futures' dollar index .DXY was up 0.6 percent.

Commodity prices were also hurt by the rising dollar, further weighing down shares in the materials and energy sectors.

New York-traded shares of Brazilian energy company Petrobras (PBR.N: Quote, Profile, Research) plummeted 7.3 percent to $37.35 while South Korean steel manufacturer POSCO (PKX.N: Quote, Profile, Research) lost 5.8 percent to $78.35.

The Bank of New York Mellon's index of leading American Depositary Receipts (ADRs) slid 3.81 percent, the largest percentage fall since April 20, while the U.S. benchmark S&P 500 index .SPX fell 3.06 percent.

Overnight in Asia major markets rose lifted by technology and financial shares, but the Bank of New York Mellon index of leading Asian ADRs dropped 3.2 percent.

Among the few Asian ADRs on the rise were those of Nissan Motor NSANY.O, up 3.7 percent to $12.22 after news the carmaker plans to start building electric vehicles and their batteries in a plant in the United States, according to the Nikkei business daily. For details see [ID:nBNG493367]  Continued...

 
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