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ADR Shares End Lower as Fed Meeting Begins
By Anna Prior
International companies trading in New York closed lower Tuesday as the Federal Reserve began its final two-day policy-setting meeting of the year.
The Bank of New York index of American depositary receipts fell 0.5% to 144.61.
The Fed will be debating the future of its $85 billion-a-month bond-buying plan, which has buoyed stock markets this year, with a decision due after the meeting concludes Wednesday, according to The Wall Street Journal.
Meanwhile in Europe, data showed that German economic sentiment is at its most robust level since April 2006.
The European index dropped 0.5% to 141.50.
Nokia Corp.'s (NOK, NOK1V.HE) stock price--up more than 90% since the company announced the sale of its handset business to Microsoft Corp. (MSFT)--is "clearly overheating," warned research firm Bernstein. The firm expects disappointment over the next year, as Nokia Siemens Network unit is likely to sacrifice profitability to restore revenue growth. "We recommend investors avoid the name," said Bernstein. Shares fell 1.3% to $7.36.
A coming vote for control of the board of Telecom Italia SpA (TI, TIA, TIT.MI) could finally dispel confusion over the strategy of the Italian telecom giant, allowing it to forge ahead with a major investment plan aimed at facing the country's "hypercompetitive" telecom market, Chief Executive Marco Patuano said in an interview with The Wall Street Journal on Tuesday. Shares slipped 2% to $9.31.
The Asian index fell 0.6% to 143.73.
Weighing on the index were shares of India-based banks, including ICICI Bank Ltd. (IBN, 532174.BY), which fell 3.5% to $35.54 and HDFC Bank Ltd. (HDB, 500180.BY), which fell 3.2% to $33.52.
Bucking the downward trend were Chinese solar stocks. Yingli Green Energy Holding Co. (YGE) rose 12% to $4.83, while Trina Solar Ltd. (TSL, K3KD.SG) climbed 9.6% to $13.51 and JinkoSolar Holding Co. (JKS) rose 9.4% to $29.36.
Also posting gains were Hanwha SolarOne Co. (HSOL), ReneSola Ltd. (SOL), JA Solar Holdings Co. (JASO) and LDK Solar Co. (LDK).
The Latin American index declined 0.3% to 278.67 and the emerging- markets index slipped 0.5% to 270.77.
Brazilian petrochemical company Braskem SA (BAK, BRKM5.BR) said Tuesday it agreed to buy 70.6% of Solvay Indupa from Belgian chemical company Solvay SA (SVYZY, SOLB.BT) for $290 million. Braskem shares fell 1.3% to $16.66.
However, steelmaker Gerdau SA (GGB, GGBR3.BR, GGBR4.BR) posted gains amid expectations for strong sales of long steel as Brazil beefs up infrastructure ahead of the 2014 soccer World Cup and 2016 Summer Olympics, both of which it will host. Gerdau shares rose 3% to $7.95.
Write to Anna Prior at firstname.lastname@example.org
(END) Dow Jones Newswires 12-17-131653ET Copyright (c) 2013 Dow Jones & Company, Inc.