An index of emerging market ADRs fell sharply midday Tuesday, a day after international markets took a pounding on concerns of trouble in the American economy and despite emergency rate cuts from the U.S. Federal Reserve.
The Bank of New York Emerging Markets ADR Index _ which includes shares of companies based in China, Mexico, Brazil and more _ lost 10.8 points, or 3.2 percent, to 323.73. ADR stands for American Depositary Receipt, which is a security designed to allow U.S. investors to trade shares of companies based overseas.
On Tuesday, the U.S. Federal Reserve voted 8-1 to lower the federal funds rate by three-fourths of a percentage point to 3.5 percent, and to cut the discount rate by three-fourths of a percentage point to 4 percent.
Chinese solar shares took a particularly harsh beating, as the price of oil fell. While not directly linked, solar and other renewable energy shares tend to fall as the price of oil falls, as cheaper fossil fuels are seen as more economically viable.
Also Tuesday, several industry trade groups warned that the meteoric rise renewable energy stocks made in 2007 could be erased if the U.S. does not extend current tax credits.
Solarfun Power Holdings Co. shed $1.68, or 8.8 percent, to $17.32.
China Sunergy Co. Ltd. fell 99 cents, or 10.2 percent, to $8.73.
Trina Solar Ltd. dropped $3.20, or 8.7 percent, to $33.49.
And LDK Solar Co.Ltd. gave up $2.10, or 5.9 percent, to $33.34.
Bucking the trend, the Bank of New York Latin Telecom ADR Index, a subset of the broader emerging markets index, rose 2.22 points to 298.98, pulled up in part by Brazil's Vivo Participacoes SA. Vivo gained 34 cents, or 7.6 percent, to $4.79.
Telefonos de Mexico SAB de CV added 43 cents to $33.67.
The Bank of New York Composite ADR Index dropped 6.59 points, or 3.8 percent, to 165.30 as the U.S. markets fell in midday trading.
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