ADR Report-Foreign shares fall as European banks slide

NEW YORK, Nov 5 (BestGrowthStock) – European bank shares fell in
New York on Friday after outlooks from HSBC Plc and Royal Bank
of Scotland worried investors, while concerns about peripheral
euro zone economies hit Spanish and Irish lenders.

HSBC (HBC.N: ) said tougher European rules on pay and a UK
bank tax were causing it harm, while Royal Bank of Scotland
(RBS.N: ) said it expects challenging market conditions in the
fourth quarter.

Spanish banks, including Santander (STD.N: ) were dragged
lower by fears of weakness in peripheral euro zone economies
after Bank of Ireland (IRE.N: ) shares slumped 10 percent.

Banks were the main drag on the overall market as the BNY
Mellon index of leading American Depositary Receipts (ADRs)
(.BKADR: ) fell 0.4 percent. That compared to the U.S. benchmark
S&P 500 index (.SPX: ), which rose 0.4 percent.

HSBC said that a UK bank tax had left it assessing whether
it should stay in London. The shares fell 2.4 percent to

RBS shares fell 4.7 percent to $14.69. The
partly-nationalized bank said the tax would add up to 250
million pounds ($403 million) to costs next year. For details,
see [ID:nLDE6A31SL]

The BNY Mellon index of leading European ADRs (.BKEUR: ) fell
0.8 percent. In Europe, the FTSEurofirst 300 (.FTEU3: ) index of
top shares rose 0.4 percent.

Investors remained nervous about banks in Ireland and
Spain. A promotion that drew a line of people outside a Madrid
branch of BBVA (BBVA.N: ) generated rumors of a bank run. The
shares fell sharply before closing down 3.7 percent at $12.27.

Shares in Santander, Europe’s largest bank, fell 4.5
percent to $11.94.

Japan led Asian ADRs higher. Among gainers, Honda Motor Co
(HMC.N: ) said its Chinese venture would have annual production
capacity of 100,000 units in 2012, more than the initially
planned 60,000 units. The shares rose 2.8 percent to $35.75.

The BNY Mellon index of leading Asian ADRs (.BKAS: ) rose 0.5
percent. In Asia, shares were higher as the Nikkei booked its
best week in a year and Hong Kong shares marched higher.

In Latin America, shares gave up some gains after a
commodity-fueled rally in the last session. Receipts with the
BNY Mellon index of leading Latin American ADRs (.BKLA: ) fell
0.2 percent. In Latin America, major benchmarks were lower.
(Reporting by Edward Krudy; Editing by Gary Crosse)

ADR Report-Foreign shares fall as European banks slide