ADR Shares End Lower as Markets Weigh Economic Data and Metals Prices Fall

   By Tess Stynes 
 

International companies trading in New York closed lower Monday as investors weighed an unexpected pickup in U.S. manufacturing activity against mixed readings for Thanksgiving weekend retail sales and falling metals prices weighed on mining companies.

Gold and silver fell to the lowest levels in almost five months on Monday as investors bet that upbeat U.S. manufacturing data may increase the possibility of an earlier tapering of the Federal Reserve's bond-buying program, which in turn could lead to weaker demand for precious metals. Platinum also retreated to a nearly five-month low.

The Bank of New York index of ADRs fell 0.98% to 148.23. The European index fell 0.76% to 144.65 and the emerging-markets index shed 1.8% to 275.85.

Decliners included AngloGold Ashanti Ltd. (AU, ANG.JO), down 6.7% at $12.68; Harmony Gold Mining Co. (HMY,HAR.JO), off 4.9% at $2.71; and Gold Fields Ltd. (GFI, GFI.JO), which fell 3.5% to $3.87. Also lower were Anglo American PLC (AAUKY, AAL.LN), down 4.3% at $10.50, and Randgold Resources Ltd. (GOLD, RRS.LN), which declined 4.9% to $67.29.

The Latin American index declined 3.43% to 281.99. Brazilian mining company Vale SA (VALE, VALE5.BR) plans to double down on its efforts to sell assets next year, seeking to further rein in costs and raise cash amid an uncertain global outlook for commodities. The world's largest iron-ore producer and No. 3 mining company also said it expects $14.8 billion in capital expenditures next year, with the bulk directed toward iron-ore mining. The planned capital spending figure is down from $15.5 billion in 2013 and $17.7 billion in 2012. Shares fell 2.8% to $14.89.

Shares of Petroleo Brasileiro SA (PBR, PETR3.BR, PETR4.BR), or Petrobras, slumped Monday after Brazil's government-run oil company said it would slowly eliminate costly fuel subsidies but didn't disclose how far or fast the subsidies would be cut. The company's board late Friday said it would raise gasoline prices by 4% and diesel by 8% to bring prices in line with international norms, but failed to provide details on its long-term strategy for regulating prices. Shares fell 11% to $14.20.

The Asian index was down 0.72% to 148.85. Giant Interactive Group Inc. (GA) named three of its directors to a special committee intended to review a nonbinding proposal to take the online-game company private. Last week, investors including former chief executive Chairman Yuzhu Shi and Baring Private Equity Asia offered to acquire the stake they don't already own for $11.75 a share or American depositary share, a 16% premium at the time. The investors already own about 47.2% of Giant Interactive. Giant Interactive was down 0.6% at $11.16.

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