NEW YORK, Oct 16 (Reuters) - U.S.-listed shares of overseas
companies fell on Tuesday led by an unexpected decline in
earnings at Swedish telecoms maker Ericsson <ERICb.ST> and
Korean steelmaker POSCO.
Equity markets around the world fell as renewed worries
about credit and a surge in oil price above $88 a barrel raised
concerns about the outlook for global growth.
The Bank of New York's index of leading American Depositary
Receipts <.BKADR> was down 1.42 percent while the 30-share Dow
Jones industrial average <.DJI> was off 0.57 percent in early
afternoon trade.
The Bank of New York's index for European ADRs <.BKEUR>
declined 1.23 percent, the Latin American index <.BKLA> was
down 1.68 percent and the Asian index <.BKAS> was down 2.04
percent.
Ericsson lost one-quarter of its market value on Tuesday
after the world's biggest supplier of mobile networks reported
a surprise drop in third-quarter profits on the back of weak
sales of network upgrades.
Ericsson was the third-biggest declining stock on Nasdaq
and the most heavily traded company share on the tech-laden
exchange, registering greater volume than such computer-related
icons as Intel Corp, Cisco Systems or Microsoft.
ADRs of Ericsson <ERIC.O> lost $9.87 or 24.11 percent, to
$31.06 on the Nasdaq. Ericsson's plunge pushed down an
exchange-traded fund for Swedish stocks, the iShares MSCI
Sweden Index Fund <EWD.N>, by 5.19 percent.
POSCO, the world's fourth-largest steelmaker, also trimmed
its full-year sales and operating profit even as analysts said
the company's outlook is positive amid strong global demand.
POSCO ADRs <PKX.N> fell $18.10, or 10 percent, to $162.90
on the New York Stock Exchange.
The fallout on Ericsson fell hard on European rivals Nokia
Corp <NOK.N> and Alcatel-Lucent <ALU.N>. Nokia fell $1.13 or
3.1 percent to $35.31 and Alcatel declined 47 cents, or 4.8
percent, to $9.27.
Among other heavily traded ADRs, Brazilian miner Cia. Vale
do Rio Doce <RIO.N> fell 96 cents, or 2.73 percent, to $34.24.
CVRD's shares are up almost 130 percent year-to-date in U.S.
dollar terms, but off from a record $36.20 set on Oct. 2.
Mexico-based wireless operator America Movil <AMX.N> was
off 36 cents, or 0.54 percent, to $65.94 and Mexican cement
maker Cemex <CX.N> fell 39 cents, or 1.19 percent, to $32.50.
Oil stocks rose on surging crude <CLc1> prices. BP Plc
<BP.N> rose 59 cents, or 0.78 percent, to $76.51 and Brazil's
Petroleo Brasileiro SA <PBR.N> gained 20 cents, or 0.24 percent
to $85.27.
((Reporting by Herbert Lash, editing by James Dalgleish;
Reuters Messaging: [email protected]; email:
[email protected]; Tel: 646 223 6019))
Keywords: MARKETS STOCKS ADRS
Keywords: MARKETS STOCKS ADRS
Keywords: MARKETS STOCKS ADRS