ADR Shares End Lower as U.S. Budget Deal Could Signal Fed Tapering

   By Anna Prior 
 

International companies trading in New York closed lower Wednesday as investors mulled the congressional budget deal, which was seen as strengthening the case for the Federal Reserve to pull back on its easy-money policies.

The Bank of New York index of American depositary receipts dropped 1.3% to 145.55.

Investors worried that a bipartisan budget agreement from Congress could raise the likelihood that the Fed could decide next week to start paring its stimulus efforts.

Meanwhile, in China, a move to liberalize interest rates raised concerns over pressure on bank profits.

The European index fell 1% to 142.29.

Royal Bank of Scotland Group PLC (RBS, RBS.LN) agreed to pay $100 million in penalties over allegations that it violated U.S. sanctions against Iran, Sudan and other nations, in the latest move by regulators to crack down on money-laundering activities. Separately, RBS's finance director, Nathan Bostock, handed in his resignation Tuesday ahead of joining rival bank Santander U.K., the latest blow to the U.K. government-controlled lender. Shares fell 4.3% to $10.58.

The Asian index slid 1.8% to 145.36.

Trina Solar Ltd. (TSL, K3KD.SG) said the company has accepted Terry Wang's resignation as chief financial officer effective Jan. 10 to pursue other interests, adding that Teresa Tan will be appointed as CFO of the company immediately upon Mr. Wang's departure. Shares fell 5.3% to $11.58.

Shares of other Chinese solar companies also dropped, with ReneSola Ltd. (SOL) down 12% to $2.74, JinkoSolar Holding Co. (JKS) declining 7.5% to $25.31 and Hanwha SolarOne Co. (HSOL) down 4.3% to $2.67.

The Latin American index toppled 2.3% to 278.08 and the emerging-markets index fell 2.4% to 271.96.

Brazilian banks were a target for selling after a report by Fitch Ratings pointed to continued low margins for Brazilian banks due to slow growth for the nation's economy in 2014. Shares of Itau Unibanco Holding SA (ITUB, ITUB3.BR, ITUB4.BR) fell 3.8% to $13.14, while those of Banco Bradesco SC (BBD, BBDO, BBDC4.BR) dropped 3.4% to $12.10 and Banco Santander (Brasil) SA's shares (BSBR, SANB3.BR, SANB4.BR) fell 2.9% to $5.95.

Write to Anna Prior at [e-mail]