U.S.-traded shares of European banks rose Thursday after a major U.S. mortgage lender predicted much smaller losses in the first quarter, which suggests the effects of the housing and credit slumps are fading.
Financial firm IndyMac Bancorp Inc. said its first-quarter mortgage-related losses will be as much as 65 percent smaller than its losses from the fourth quarter. The news gave a lift to U.S. banks, as well as shares of their counterparts trading as ADRs, or American Depositary Receipts.
ADRs are securities that allow U.S. investors to trade shares of companies based overseas.
In afternoon trading, shares of British bank Barclays Group PLC rose $1.05, or 2.9 percent, to $37.45
UBS AG of Switzerland added $1.21, or 3.6 percent, to $34.80
In heavy trading, ADRs of Banco Santander SA picked up 85 cents, or 4 percent, to $21.94.
Credit Suisse Group advanced $1.84, or 3.5 percent, to $55.19.
ADRs of Deutsche Bank AG gained $2.78, or 2.3 percent, to $122.23.
The Bank of New York Europe ADR Index inched up 1.14 points to 178.80.
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