May 15, 2012
NEW YORK (Dow Jones)--International companies trading in New York closed lower Tuesday, as Greece accepted that it must hold new elections after failing to form a coalition government.
The Bank of New York index of ADRs fell 1.4% to 116.47 as the concerns over Greece prompted investors to sell European banking shares.
National Bank of Greece SA (NBG, ETE.AT) sank 7% to $1.72.
Societe Generale SA (SCGLY, GLE.FR) dropped 4.6% to $3.99, Credit Agricole SA (CRARY, ACA.FR) tumbled 7.8% to $1.90 and Banco Santander (STD, SAN.MC) ended 3.5% lower at $5.81.
The European index declined 1.5% to 107.26.
Germany's two largest steelmakers Tuesday forecast sharp drops in full-year operating profit as a fragile economy continues to weigh on demand and prices for the companies' products. ThyssenKrupp AG (TYEKY, TKA.XE) and Salzgitter AG (SZG.XE) warned the sovereign-debt crisis in the euro zone as well as rising prices for energy and raw materials still pose considerable threats for the global economy.
ThyssenKrupp dropped 4.6% to $5.06 and fellow steelmaker ArcelorMittal SA (MT, MT.AE, MT.FR) dropped 4.1% to $14.97.
The Asian index fell 1.2% to 117.13.
VanceInfo Technologies Inc.'s (VIT) first-quarter profit dropped 52% as the information-technology-services provider's input costs, including higher wages, continued to pressure margins. The increased expenses masked continued growth in demand for the company's outsourcing services, and VanceInfo raised its full-year revenue guidance.
VanceInfo's stock ended down 3.9% at $10.49.
The Latin American index shed 1.7% to 311.72 while the emerging-markets index ended 1.1% lower at 269.67.
Weak first-quarter earnings could be followed by more disappointment in the second quarter for Brazilian airline TAM SA (TAM, TAMM4.BR), UBS said. After falling 22% from a year earlier last quarter, earnings could deteriorate even further in the second quarter as the period is seasonally poor for the sector, the firm said. Shares of TAM tumbled 4.1% to $22.21.
-By Corrie Driebusch, Dow Jones Newswires; 212-416-2143; email@example.com
(END) Dow Jones Newswires
May 15, 2012 16:27 ET (20:27 GMT)