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ADR REPORT-Europe, Brazil boost foreign shares
July 2, 2012 / 9:26 PM / in 5 years

ADR REPORT-Europe, Brazil boost foreign shares

NEW YORK, July 2 (Reuters) - U.S.-listed shares of foreign companies rose on Monday, boosted by stocks of European companies, which rose in anticipation of further action by policymakers tackling the region’s debt crisis.

Brazilian shares also gave foreign stocks a lift as the Bovespa local benchmark added 0.6 percent.

A European Union agreement at a summit last week would allow bailout fund cash to be channeled directly into banks to avoid a financial market meltdown. The deal was seen as paving the way for monetary stimulus from the European Central Bank.

Manufacturing sectors in the United States, the euro zone, China and Brazil all shrank last month as factories felt the impact of Europe’s debt crisis, a series of economic reports showed.

But the gloomy economic news was seen as a cue for central banks to step in and support their economies. Some expect U.S. Federal Reserve policymakers, who meets on July 31-Aug. 1, to start a third round of quantitative easing through bond purchases.

“Both growth and inflation are slowing, which puts the Fed firmly in the game,” said Jacob Oubina, senior U.S. economist at RBC Capital Markets in New York. “There is a very good chance of QE3 at the August Fed meeting.”

The BNY Mellon index of leading American depositary receipts rose 0.8 percent, while in comparison the S&P 500 index rose 0.25 percent.

The BNY Mellon index of leading European ADRs jumped 1 percent, while the FTSEurofirst 300 index of top shares closed up 1.4 percent.

The BNY Mellon index of leading Asian ADRs edged up 0.3 percent, with Chinese ADRs were down 0.2 percent.

Brazilian ADRs, up 1.5 percent, led the advance in the BNY Mellon index of leading Latin American ADRs which closed up 1.2 percent.

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