US-listed shares of European banks slipped on Friday, with financials still under pressure from the uncertainty over US debt talks and the eurozone's own sovereign debt worries. Shares of overseas companies were mostly flat, however, in a day of choppy trading, as investors awaited signs from Washington on a plan to prevent a US default.
Shares of Barclays trading in the United States fell 0.9 percent, while Lloyds Banking Group declined 2.5 percent and HSBC dropped 0.7 percent. The BNY Mellon index of leading European ADRs ended nearly flat. US shares of London-based Pearson rose 3.4 percent after the educational and Penguin books publisher raised its 2011 profit outlook on the heels of strong first-half earnings.
The BNY Mellon index of leading American Depository Receipts (ADRs) edged up 0.03 percent, while the US benchmark S&P 500 index fell 0.7 percent. With four days left before the United States hits its debt limit, House Republicans are set to vote on a retooled debt-reduction bill that is largely opposed by Democrats and the White House.
Washington's stalemate has kept investors on tenterhooks as they consider the possibility of the United States losing its top credit rating. In Europe, the FTSEurofirst 300 index of top shares ended down 0.7 percent. Receipts with the BNY Mellon index of leading Latin American ADRs rose 0.1 percent, the biggest gain among the ADR indexes. US shares of Brazil's Embraer jumped 9 percent after the aircraft manufacturer reported strong second-quarter results and raised its guidance.
Among other Latin American advancers, food-retailer Companhia Brasileira de Distribuicao rose 4 percent, while Argentina's real estate company IFM Investment LTD gained 5.3 percent. Asian stocks were nearly flat, with the BNY Mellon index of leading Asian ADRs up 1 basis point. US shares of Silicon Motion Technology Corp jumped 8.8 percent after the Taiwan-based company reported strong second-quarter results late Thursday.
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