U.S.-Listed Chinese Stocks Retreat on Railroad Crash, U.S. Debt
July 26 (Bloomberg) -- Chinese stocks listed in the U.S. fell, sending a benchmark index lower for the first time in five sessions, following a fatal train wreck in eastern China and as President Barack Obama and congressional leaders failed to reach an agreement on raising the federal debt limit.
The Bank of New York Mellon China ADR Index, which tracks American depositary receipts, declined 0.6 percent to 441.95 at the close of trading in New York yesterday, snapping gains in the previous four sessions. It earlier slumped as much as 1.1 percent. The S&P 500 retreated 0.6 percent to 1,337.43.
"Whether the U.S. debt ceiling will be revised up was the main factor that had a negative impact on global markets all day," said John Lomax, an emerging- markets strategist at HSBC Holdings Plc, in a phone interview from London. "On top of that, you have this rail crash."
A high-speed train crash July 23 that killed at least 36 people spurred concern the government will slow transportation investment. American depositary receipts of Chinese companies fell after the shares sank in Shanghai and as U.S. stocks retreated on speculation officials will fail to raise the debt limit and avoid default.