ADR Report-ADRs rise for second day with European banks

By Caroline Valetkevitch

NEW YORK, Dec 2 (BestGrowthStock) – U.S.-listed shares of overseas
companies rose more than 1 percent on Thursday, with shares of
European banks leading the way up for a second day after
reports the European Central Bank was buying euro-zone debt.

Also, the ECB, which traders said was quietly buying
Portuguese and Irish debt, announced it was extending its
liquidity safety net for euro-zone banks. For details, see

The announcement caused the euro (EUR=: ) to strengthen
against the dollar, making the ADRs more attractive.

Shares of the Lloyds Banking Group Plc (LYG.N: ) jumped 3.3
percent to $4.13 in New York, while shares of Spain’s Banco
Santander S.A. (STD.N: ) shot up 4.8 percent to $10.88. Allied
Irish Bank (AIB.N: ) was up 2.3 percent at 94 cent.

Royal Bank of Scotland Group (RBS.N: ) rose 4.2 percent to
$13.05, while Deutsche Bank AG (DB.N: ) gained 2.7 percent to

It was the second day of strong gains for ADRs of the
European banks, which have been under pressure recently on
concern about the debt crisis in the euro zone.

Options activity in the European banks turned bullish on
Wednesday, suggesting further gains in those shares.

Worries about debt in Portugal and Spain resurfaced this
week following an 85 billion-euro ($110.7 billion) European
Union-International Monetary Fund rescue of Ireland.

The BNY Mellon index of leading European ADRs (.BKEUR: ) was
up 1.8 percent, while the FTSEurofirst 300 (.FTEU3: ) index of
top European shares finished 1.6 percent stronger at 1,106.18
points, the highest close since Nov. 18.

The BNY Mellon index of leading American Depositary
Receipts (.BKADR: ) was up 1.7 percent, while the U.S. benchmark
S&P 500 index (.SPX: ) was up 1.3 percent.

The BNY Mellon index of leading Asian ADRs (.BKAS: ) rose 1.5
percent, while receipts with the BNY Mellon index of leading
Latin American ADRs (.BKLA: ) also gained 1.5 percent.

Data showing U.S. pending home sales unexpectedly rose in
October boosted Mexican shares, including Cemex (CX.N: ), which
was up 4.2 percent at $9.59 in New York. The United States is
Mexico’s main trading partner.
(Editing by Padraic Cassidy)

ADR Report-ADRs rise for second day with European banks