ADRTraders.com: Overseas shares traded on Wall Street fell on Wednesday, weighed down by an overnight decline in key Asian stock markets amid losses in the energy sector.
ADRTraders.com: Overseas shares traded on Wall Street fell on Wednesday, weighed down by an overnight decline in key Asian stock markets amid losses in the energy sector.
A very important factor is the Oil and the consumer confident index.
Oil is near new highs every day. If you own the oil, you're sitting pretty. But, if you are a refiner who has to buy the oil and then process it, you are in big trouble right now. Why? Because your cost of input is a heck of a lot higher than what you can get on the market for your output - gasoline.
So, not all is well in the industry. Most of the refiners are down between 40% and 60% from their highs - walloped by their own products. This may last a while longer, but at some point the law of supply and demand will go the other way and the price of oil will moderate or fall.
The Bank of New York Mellon's index of leading American Depositary Receipts (ADRs) was down 0.3 percent while the 30-share Dow Jones industrial average .DJI seesawed with the price of oil and a new round of worries about the state of the financial sector.
Light crude futures, which hit an intraday record $135.09 per barrel last week, were up 1.1 percent at $130.31 on the New York Mercantile Exchange.
New York-traded shares in Hong Kong-based oil and gas producer CNOOC (CEO.N: Quote,) fell 4.6 percent to $179.70 on the New York Stock Exchange.
ADRs of Tokyo-based trading company Mitsui & Co (MITSY.O: Quote, Profile, Research) were off 3.6 percent at $494.42, while those of Beijing-based China Finance Online Co (JRJC.O: Quote) gained 6.4 percent to $25.43, both on the Nasdaq.
ADRs in Russian mining company Mechel OAO (MTL.N: Quote, Profile, Research) jumped 5.4 percent to $54.28 on the NYSE. A Reuters survey of analysts estimated an increase of nearly 60 percent in the company's net profit for 2007.
Receipts with the Bank of New York Mellon's index of leading Latin American ADRs .BKLA rose 1.2 percent. In Latin America, the Bovespa index of Sao Paulo stocks .BVSP gained 2 percent helped by a rebound in commodity firms.
Here is where the news has some value. We will continue our recommendations for Latin American Stocks, especially Brazil which recently was upgraded to Investment Category by the rating agencies.
Wall Street-traded shares in Cemex (CX.N: Quote, Profile, Research) fell 3.5 percent to $29.59 while Brazil's Petrobras (PBR.N: Quote, Profile, Research) gained 2 percent to $71.73, both on the NYSE.
To see more information about the stocks and our recommendations please follow this link. http://www.adrtraders.com/products.php
Invest safely
Juan Munoz
|
