Mechel OAO (
) 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. (
). 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 (
) +3%, Barclays Plc (
) +0.8% and HSBC Holdings Plc (
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%.
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