Apr 17, 2012
NEW YORK (Dow Jones)--International companies trading in New York closed sharply higher Tuesday, in line with the broader market, on positive news out of Europe.
The Bank of New York index of ADRs rose 1.4% to 126.75, lifted by European financials.
Shares of European banks rose Tuesday as Spain auctioned off more short-term debt than expected and the International Monetary Fund raised its outlook for global economic growth to 3.5% for the year, though it warned that while prospects have improved in recent months, Europe's debt crisis and a potential oil price spike still threaten.
BNP Paribas SA (BNPQY, BNP.FR) jumped 6.7% to $20.39, Credit Agricole SA (CRARY, ACA.FR) traded up 4.5% to $2.55, and Societe Generale SA (SCGLY, GLE.FR) surged 8% to $4.87.
The European index gained 1.8% to 116.12.
German telecommunications company Deutsche Telekom AG (DTEGY, DTE.XE) is considering the sale of its Dutch unit in 2013, Financial Times Deutschland reports Tuesday, citing sources close to the company. The article said people in the banking industry value the unit at EUR2 billion-EUR3 billion, and the proceeds would be invested in Telekom's European operations. Shares of Deutsche Telekom closed 1.7% higher at $11.52.
The Asian index rose 0.8% to 126.46.
New Oriental Education & Technology Group Inc.'s (EDU) fiscal third-quarter results topped analysts' estimates as total net revenues increased 32% year-over-year. Shares of the private educational services provider in China gained 3.6% to $27.87.
The Latin American index climbed 0.6% to 355.93.
GOL Linhas Aereas Inteligentes SA (GOL, GOLL4.BR) shares jumped 8.6% to $6.05 on a report that Brazil may reduce payroll taxes for the airline industry. The move, which would be partially offset by a tax on revenue, would add to earnings.
The emerging markets index added 0.9% to 298.04 as India's central bank slashed its key lending rate by half a percentage point Tuesday to boost flagging economic growth.
The move helped lift the shares of financial companies in India, with ICICI Bank Ltd. (IBN, 532174.BY) rising 3.3% to $34.59, and HDFC Bank Ltd. (HDB, 500180.BY) climbing 5.1% to $34.84.
-By Corrie Driebusch, Dow Jones Newswires; 212-416-2143; email@example.com
(END) Dow Jones Newswires
April 17, 2012 16:34 ET (20:34 GMT)