ADRs End Higher; Baidu, ArcelorMittal and Diageo Trade Actively

International stocks trading in New York closed higher on Wednesday.

The BNY Mellon index of American depositary receipts rose 0.9% to 151.39. The European index increased 0.4% to 140.35. The Asian index rose 1.4% to 180.57. The Latin American index rose 2.4% to 235.90. And the emerging-markets index increased 2.2% to 325.76.

Baidu Inc. (BIDU), ArcelorMittal SA (MT) and Diageo Plc (DEO) were among those with ADRs that traded actively.

German premium car maker Daimler AG and China's Baidu are enhancing their strategic cooperation in the areas of automated driving and connected vehicles. Daimler said Wednesday that it signed a memorandum of understanding with Baidu to deepen their partnership through joint automated driving and connectivity projects. ADRs of Baidu rose 2.5% to $262.91.

Italy's government is opening a formal review of ArcelorMittal's proposed takeover of Ilva steelworks, which could lead to the deal being scrapped, according to a statement issued late Tuesday by the Ministry for Economic Development. ArcelorMittal said it met with Economic Development Minister Luigi Di Maio on Wednesday to discuss proposals for the rehabilitation of the Ilva site, which has numerous environmental issues. ArcelorMittal agreed last year to buy Ilva for 1.8 billion euros ($2.1 billion) after it was placed under state supervision due to financial difficulties and environmental issues. The steelmaker was set to take over operations on July 1, but the Italian government delayed the handover date to Sept. 15, citing environmental, social, economic and employment concerns. On Tuesday ArcelorMittal said it had accepted all additional commitments requested by Italian authorities and expected the transaction to close soon. ADRs of ArcelorMittal rose 1.4% to $31.35.

Diageo is tipped to report higher sales and may announce another share buyback when the spirits group reports annual results on July 26. Goldman Sachs expects the maker of Johnnie Walker whisky to report a 4.1% rise in organic sales, 100 basis points of organic margin expansion and earnings per share of 119 pence. Last July, Diageo approved a buyback of up to GBP1.5 billion in the year to June 30, 2018. Deutsche Bank says the company will probably continue the buyback this year, though it's unlikely to return more than last year. ADRs of Diageo rose 1.2% to $150.96.

(END) Dow Jones Newswires

July 25, 2018 17:14 ET (21:14 GMT)

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