Apr 23, 2012
NEW YORK (Dow Jones)--International companies trading in New York closed sharply lower Monday, in line with the broader market, due to political uncertainty in key euro-zone country France.
The Bank of New York index of ADRs fell 1.4% to 124.76 as financial stocks in the euro zone traded downward following Sunday's first-round presidential election in France.
Socialist candidate Francois Hollande, who is seen as less committed to fiscal austerity than President Nicolas Sarkozy is, took first place in the contest. The two candidates will face each other in a runoff election on May 6.
French banks Credit Agricole SA (CRARY, ACA.FR) tumbled 4.2% to $2.31, and BNP Paribas (BNPQY, BNP.FR) lost 2.9% to $18.78.
The European index declined 1.5% to 114.23.
BMW AG's (BMW.XE) sales chief Ian Robertson said at a press briefing in Beijing that sales growth in China will ease in coming months, according to Bloomberg News. Daimler AG (DDAIY, DAI.XE) shares slid 3.9% to $52.15.
The Asian index shed 1.5% to 124.42, and the emerging markets index slipped 1.4% to 293.10.
The U.S. Department of Homeland Security has found "errors in a significant percentage" of Infosys Ltd.'s (INFY, 500209.BY) employment-authorization forms, raising concerns about a potential penalty against the software exporter. The errors could eventually result in fines, the Bangalore-based company said. Shares of Infosys dropped 2.1% to $45.66.
Shares of Chinese solar panel makers also tumbled Monday. Maxim Group downgraded its stock-investment rating on First Solar Inc. (FSLR) to sell from hold, saying its competitive advantage is gone as the price of polysilicon has settled at $20 per kilogram or less. Shares of fellow solar panel maker LDK Solar Co. (LDK) also fell, off 8.6% at $2.97. Yingli Green Energy Holding Group (YGE) lost 3.7% to $3.40, and Trina Solar Ltd. (TSL, K3KD.SG) dropped 5.8% to $6.38.
The Latin American index ended off 0.9% at 351.70.
Companhia Brasileira de Distribuicao (CBD, PCAR4.BR), Brazil's largest supermarket chain by revenue, is in advanced talks to acquire the control of local wholesaler Tenda Atacadao, reported the local newspaper O Estado de S. Paulo in its Monday edition. Shares traded down 3.3% to $46.70.
-By Corrie Driebusch, Dow Jones Newswires; 212-416-2143; firstname.lastname@example.org
(END) Dow Jones Newswires
April 23, 2012 16:30 ET (20:30 GMT)