ADRs End Lower; Financial Firms Decline

International stocks trading in New York closed lower on Monday.

The BNY Mellon index of American depositary receipts fell 2.7% to 114.82. The European index decreased 2.8% to 111.75, the Asian index dropped 2.6% to 124.60, the Latin American index fell 2.6% to 169.21 and the emerging markets index declined 2.2% to 218.63.

Financial firms were among the companies with ADRs that traded actively.

U.K. and European financial firms were among the biggest decliners Monday as banks and asset managers faced questions from Thursday's vote by Britons to leave the European Union. Fears that volatile markets could delay if not undermine fragile recoveries at many banks have rattled investors.

Among U.K. banks, Barclays PLC (BCS, BARC.LN) slumped 21% to $7.03, Royal Bank of Scotland Group PLC (RBS, RBS.LN) slid 14% to $4.69 and Lloyds Banking Group PLC (LYG, LLOY.LN) tumbled 17% to $2.78.

Among British insurers, old worries over capital strength at Aviva PLC (AV, AV.LN) also flared up, sending its ADRs down 10% to $9.41. Meanwhile, Prudential PLC (PUK, PRU.LN, K6S.SG, 2378.HK) retreated 12% to $29.33.

Among Swiss lenders, Credit Suisse Group AG (CS, CSGN.EB), which is struggling to restructure while relying heavily on investment banking businesses that use London as an entry point to EU markets, dropped 8.8% to $10.50. UBS Group AG (UBS), which uses London as a crucial transit point for its investment bank, declined 8.2% to $12.81.

Banco Santander SA (SAN, SAN.MC) decreased 3.7% to $3.69, as the Spanish banking giant reiterated its financial targets for this year to head off deepening investor anxiety about the effect of "Brexit" on its profitability. Santander generates around one-quarter of its net profit in the U.K.

Britain's decision to leave the European Union will weaken airfares and is causing Ryanair Holdings PLC (RYAAY, RY4C.DB, RYA.LN), Europe's largest carrier by passengers, to consider shifting growth away from the U.K., the airline's chief executive said Monday. Ryanair's ADRs fell 14% to $66.82. Among other travel related firms with ADRs, cruise-ship company Carnival PLC (CUK, CCL, CCL.LN) declined 6.8% to $43.75 and InterContinental Hotels Group PLC (IHG, IHG.LN) dropped 6.3% to $35.14.

Write to Tess Stynes at [e-mail]

(END) Dow Jones Newswires

June 27, 2016 18:16 ET (22:16 GMT)

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