US-listed shares of overseas companies tumbled on Friday as yet another setback with Greece accepting a debt deal pressured banks while oil giant Petrobras tumbled on weak results. A deal for Greece, which would have secured a bailout for the country and allowed it to avoid a disorderly default, appeared settled on Thursday, though new doubts emerged with euro zone finance ministers telling Athens to do more.
On Friday, a far-right Greek party leader said he would not back the austerity measures, which are deeply unpopular with the public. European shares posted their steepest daily fall since January on the news, with the FTSEurofirst 300 of top shares closing down 0.9 percent while the BNY Mellon index of leading European American Depository Receipts sank 1.5 percent.
Bank stocks fell on the fear that another setback in the region would erode their profits and slow global growth. HSBC Holding lost 2.2 percent to $43.96 while Credit Suisse fell 3.6 percent to $25.84. Deutsche Bank sank 4.7 percent to $44.24. Financials were lower around the world. Brazil's Banco Bradesco fell 1.8 percent to $18.04 while Argentina's Banco Marco S.A. lost 2 percent to $21.54 and Japan's Mitsubishi UFJ Financial Group slid 3.6 percent to $4.87.
A broader index of ADRs fell 1.8 percent while the BNY Mellon index of leading Asian ADRs lost 2.2 percent. The BNY Mellon index of leading Latin American ADRs was down 2.5 percent, pressured by Brazil's state-controlled Petrobras. Petrobras plunged 7.4 percent to $29.61 on heavy volume a day after reporting fourth-quarter earnings that were far below expectations. The profit was hit by rising operating costs, which offset the benefit of stronger revenue.
Other oil companies were lower while US crude futures dropped 1.4 percent. China's Cnooc Ltd dropped 2.5 percent to $220.03 and BHP Billiton Plc sank 3 percent to $64.86. In Latin America, shares fell on concerns about Greece and Petrobras, while in Hong Kong, shares fell as investors took profits in energy and financial stocks.