By Tess Stynes
International companies trading in New York closed lower on
Monday despite an early boost from an unexpected deal over the
weekend to curb Iran's nuclear program in exchange for a loosening
of economic sanctions.
The Bank of New York index of ADRs fell 0.52% to 148.53. Gold
futures also declined as the surprise accord defused some of the
long-running tensions in the Middle East, reducing investor
interest in haven assets such as precious metals. Decliners
included mining companies such as Peru-based Compania de Minas
Buenaventura SA (BVN), which dropped 2.2% to $11.78; and South
Africa-based Harmony Gold Mining Co. Ltd. (HMY, HAR.JO), down 2.4%
at $2.90 and AngloGold Ashanti Ltd. (AU, ANG.JO), off 2.3% at
$13.36.
The European index fell 0.35% to 144.52. Some oil majors shares
were lower as crude prices weakened on expectations that Iran's oil
exports may increase. Decliners included BP PLC (BP, BP.LN) , down
1.2% at $47.47 and Statoil ASA (STO), off 1.4% at $22.68.
Fresenius Medical Care AG (FMS, FME.XE) was a bright spot,
trading higher after the U.S. Centers for Medicare and Medicaid
Services said it will reduce payments to kidney dialysis providers
by less than 1% over the next two years in a reversal of the
much-larger cuts it had proposed earlier this summer. The move
handed at least a temporary victory to dialysis providers such as
Fresenius. Shares rose 7.2% to $34.54.
The emerging markets index shed 1.02% to 277.20 and the Latin
American index declined 1.49%, to 291.02. Shares of some Brazilian
lenders declined as the nation's Supreme Court prepared to decide
on a series of complaints by depositors who say they lost money
when the country changed its currency on multiple occasions between
1986 and 1995 to fight inflation. If the court rules against the
banks, it could cost them billions of reais. Decliners included
Itau Unibanco Holding SA (ITUB, ITUB3.BR, ITUB4.BR), which dropped
2.9% to $13.83, and Banco Bradesco SA (BBD, BBDO, BBDC4.BR), which
declined 2.3% to $13.09.
The Asian index was down 0.61% to 148.77. Still, Giant
Interactive Group (GA) was a bright spot, after the Chinese
online-game company said investors, including Chairman Yuzhu Shi
and Baring Private Equity Asia, made a preliminary nonbinding
proposal to acquire the stake in the company that they don't
already own in a take-private deal that values it at roughly $2.86
billion. The investors, which have a combined stake of roughly
47.2%, made a preliminary offer of $11.75 a share. Shares were up
13% at $11.41.
Write to Tess Stynes at tess.stynes@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires