US-listed shares of foreign companies edged lower on Friday as a weaker-than-expected read on economic expansion undercut optimism about the pace of the recovery. Gross domestic product expanded in the fourth quarter but below forecasts as a strong rebuilding of inventories and weak spending on capital goods hinted at slower growth this year.
In addition, concerns persisted over sovereign debt issues in Europe, with Greece under international pressure to push through more budget cuts and implement long-agreed austerity reforms in return for a new bailout that would allow it to avert bankruptcy.
European shares fell more than 1 percent on Friday, giving the FTSEurofirst 300 index of top European shares its first weekly loss since mid-December. Lloyd's Banking Group fell 1 percent while Governor and Company of the Bank of Ireland fell 1.8 percent to $6.14. The BNY Mellon index of leading European ADRs fell 0.5 percent, pressuring the BNY Mellon index of leading American depository receipts, which fell 0.3 percent.
Among the most active European ADRs, BP Plc fell 2.3 percent to $43.76 after the oil giant lost its attempt to shift over $15 billion of costs related to the Gulf of Mexico oil spill onto Transocean, increasing the possibility BP may have to foot the entire $42 billion clean up bill.
Latin American ADRs were flat while Asian ADRs were up less than 0.1 percent. In Hong Kong, shares rose for a sixth straight session, although profit-taking capped gains. China Medical shares plummeted 24.5 percent to $2.77 a day after Fitch downgraded its rating on the stock to "RD."
The ratings agency said no payment had been received on the company's USD125m 6.25% convertible senior notes, due 2016. On the upside, a number of solar power companies rallied. Suntech Power rose 3.1 percent to $3.34 while LDK Solar gained 5.2 percent to $4.89 and China Sunrgy advanced 3.6 percent to $2.33.
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