ADRs End Higher; HSBC, Total Trade Actively

Features Dow Jones Newswires

International stocks trading in New York closed higher on Tuesday.

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The BNY Mellon index of American depositary receipts rose 1% to 150.61. The European index improved 1% to 140.40. The Asian index increased 0.9% to 174.56. The Latin American index rose 1.2% to 256.27, and the emerging-markets index increased 0.9% to 325.98.

HSBC Holdings PLC (HSBC, HSBA.LN, 0005.HK) and Total SA (TOT, FP.FR) were among those with ADRs that traded actively.

HSBC shares have benefited from the company's international exposure following the U.K.'s vote to leave the European Union, though domestic banks are catching up on expectations that the U.K. will stay in the EU's trade structures, says Credit Suisse. The Swiss brokerage notes that HSBC shares have outperformed domestic peers by about 10% so far this year, yet earnings revisions have lagged about 5% on average. ADRs rose 2% to $50.60.

Lloyds Banking Group PLC (LYG, LLOY.LN) is set to raise its 2017 annual dividend, says Credit Suisse as it upgrades the U.K. bank to outperform from neutral. CS reckons Lloyds will increase its ordinary dividend for the year to Dec. 31 to 3 pence a share from 2.55 pence a year ago. ADRs rose 2% to $3.65.

Credit Suisse upgrades Royal Bank of Scotland Group PLC (RBS, RBS.LN) to neutral from underperform, citing market expectations of higher earnings this year. The Swiss investment bank notes that the market has upgraded consensus estimates for earnings per share in the year to Dec. 31 by about 30% so far this year. This has largely been driven by a better outcome for RBS's Williams & Glyn unit, Credit Suisse says. The brokerage also increases its price target for RBS shares to 275 pence from 255 pence. ADRs rose 3% to $7.43.

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Total SA (TOT, FP.FR) intends to issue new shares, representing 1% of its share capital, to be paid as an interim dividend, the company said Tuesday. The French energy provider said it would issue 25.6 million shares with a price of 41.12 euros ($48.27), after 69% of shareholders had chosen to receive payment for the 2017 first interim dividend in shares. In September, Total had offered a first interim dividend of EUR0.62 a share with the option for shareholders to receive payment in cash or in new shares. ADRs rose 1% to $53.91.

(END) Dow Jones Newswires

October 10, 2017 17:24 ET (21:24 GMT)