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ADR Report-ADRs down sharply on recession fears
By Ryan Vlastelica
NEW YORK, Oct 10 - Overseas shares traded in the United States were hit hard on Friday as growing uncertainty about the global economy and far-reaching effects of the credit crisis compelled investors to build up their cash positions.
The Bank of New York Mellon's index of leading American Depositary Receipts <.BKADR> lost 6.4 percent while the Dow Jones Industrial Average <.DJI> fell 4.1 percent.
Markets were volatile despite such recent moves as a global coordinated interest rate cut, individual liquidity injections and the passage of a $700 billion bailout plan in the United States.
Stocks briefly lurched lower after an official from the Group of Seven said the leaders of biggest industrialized countries were unlikely to adopt Britain's proposal to guarantee lending between banks.
The Bank of New York Mellon's index of leading European ADRs <.BKEUR> was down 6 percent. In Europe, shares dropped to a five-year low amid panicked selling that especially hurt financial companies. [ID:nLA34247]
Among British ADRs, HSBC Holdings <HBC.N> shares lost 5.3 percent to trade at $66.76 while the Royal Bank of Scotland <RBS.N> plunged 13 percent to $1.30 on the New York Stock Exchange.
Earlier on Friday, Credit Suisse said its working assumption was that RBS would require 10 billion pounds to raise its capital ratios. [ID:nLA174313]
The FTSEurofirst 300 <.FTEU3> index of top European shares ended down 7.6 percent.
The Bank of New York Mellon's index of leading Asian ADRs <.BKAS> tumbled 7.1 percent. In Asia, the Hang Seng Index <.HSI> closed down 7.2 percent, a nearly three-year low as investors feared a global recession. [ID:nHKG127668]
The Shanghai Composite Index <.SSEC> fared relatively better, closing down 3.6 percent.
Receipts with the Bank of New York Mellon's index of leading Latin American ADRs <.BKLA> fell 8.3 percent. Brazilian shares plunged, creating pressures on the national currency that triggered a halt in share trading. [ID:nN10423432]
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