Jul 12, 2012
International companies trading in New York closed lower Thursday as concerns about slowing global growth rose ahead of a report due Friday on China's economy.
The Bank of New York index of ADRs fell 1.3% to 115.96.
China is slated to release its second-quarter gross domestic product Friday in a report much anticipated after two recent interest-rate cuts for the world's second-largest economy.
The report will follow a series of disappointing statements from global central banks this week after both the Federal Reserve and the Bank of Japan signaled they don't intend to take fresh steps to boost economic growth.
The European index fell 1.1% to 107.93.
Shares of Carrefour SA (CRRFY, CA.FR) climbed after the French retailer--the world's second-largest by sales after Wal-Mart Stores Inc. (WMT)--reported better-than-expected second quarter results. The company said sales in Europe and France have "showed improvement" and full-year targets remain on track. Shares jumped 6.3% to $3.39 in New York trading.
German enterprise software company SAP AG (SAP) also bucked a tough economic climate in Europe and abroad in the second quarter, pre-reporting results above analyst expectations Thursday. Shares rose 2.9% to $58.40.
The Asian index fell 2.2% to 113.81.
Japan's banks slumped after the country's central bank signaled it would stand pat on existing monetary policies.
Mitsubishi UFJ Financial Group Inc.'s (MTU, 8306.TO) shares lost 2.5% to $4.71 while Nomura Holdings Inc. (NMR, 8604.TO) dropped 2.6% to $3.33. Mizuho Financial Group Inc.'s (MFG, 8411.TO) stock fell 0.9% to $3.23.
The Latin American index fell 0.6% to 309.71.
Shares of Brazilian mobile telecommunications company TIM Partipacoes (TSU, TIMP3.BR) tumbled after a Brazilian government official said the government could consider halting the company's sales of new service contracts due to excessive complaints about service quality. U.S.-listed shares closed 9.3% lower at $24.04.
The emerging-markets index fell 1.4% to 261.40.
Shares of Infosys Ltd. (INFY, 500209.BY) took a big hit Thursday after the Indian outsourcing-services company slashed its forecast for the year in half and reported quarterly results that fell short of analyst expectations. Infosys, which relies on orders from U.S. and European companies for the majority of its business, cited a slowdown in customer spending. Shares closed 11.2% lower at $38.75 in New York trade.
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(END) Dow Jones Newswires
July 12, 2012 16:41 ET (20:41 GMT)