Mechel Leads Gains Among European ADRs on Restructured Debt; Biotechs Pressured on Yellen Comments


Mechel OAO ( MTL ) led gains among American depositary receipts of European companies Tuesday after a creditor extended the maturity of loans to units of the Russian miner.

European ADRs gained 0.7% on average, as measured by the Bank of New York Mellon Europe ADR Index, compared with a 0.2% decline for the S&P 500 Stock Index. Decliners led advancers 75 to 29.

The gain among European ADRs defied Tuesday's weakness in European markets, which slid after Germany investor confidence data fell for a seventh straight month. The ZEW indicator of economic sentiment fell to 27.1 points from 29.8 in June.

Mechel surged 7.3% to a four-day high of $1.92 per ADR after VTB Bank extended the maturity of loans to two units, Southern Kuzbass Coal Co. and Yakutugol Holding Co., to 2018.

European banks showed mixed trading by region with some gaining on a favorable earnings report from Citigroup Inc. ( C ). Banks from Europe's peripheral countries fell after a report that Rioforte, a unit of Portugal's Espirito Santo International, was preparing to file for creditor protection.

The gainers included Royal Bank of Scotland Group Plc ( RBS ) +3%, Barclays Plc ( BCS ) +0.8% and HSBC Holdings Plc ( HSBC ) +0.1%.

Decliners included Holland's ING Groep NV (ING) -2%, Spain's Banco Bilbao Vizcaya Argentaria SA (BBVA) -2% and Banco Santander SA (SAN), and the National Bank of Greece (NBG) -1.4%.

Shire Plc (SHPG) fell 1.7% to $249.98 per ADR, a day after the Irish drugmaker hit a record high of $255.70 on a higher takeover bid by Chicago-based Abbvie Inc. (ABBV).

Biotechs faced selling pressure after Federal Reserve Chairwoman Janet Yellen said in Congressional testimony that valuations of smaller biotech firms appeared stretched. GW Pharmaceuticals Plc (GWPH) fell 6.3% to $83.23 per ADR while Flamel Technologies SA (FLML) declined 5.3% to $2.51.

European ADR decliners included Telecom Italia SPA (TI) -3.7%, Criteo SA (CRTO) -3.3% and CGG (CGG) -2.9%.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing , Commodities

Referenced Stocks: MTL , C , RBS , BCS , HSBC

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