Overseas shares traded in the United States fell on Friday, pulled lower by financial stocks as a US plan to limit risk-taking in banks roiled global equity markets. Shares of European banks listed in New York tumbled, including Royal Bank of Scotland, which fell 4.8 percent to $10.86 and Deutsche Bank, down 5.3 percent at $62.14.
Some European banks could see a small bite taken out of profits by the US proposals, but the main concern for investors was the heightened uncertainty. US President Barack Obama on Thursday outlined new proposals that would curb banks' size and risk-taking and could cut into profits.
Shares of resource companies also dragged as commodity prices tumbled. Oil prices slid to fresh four-week lows, while in the energy sector BP Plc fell 2.9 percent to $57.87 and PetroChina lost 1.7 percent to $114.34. Among miners, BHP Billiton Plc gave up 2.8 percent at $61.13 and Rio Tinto slipped 2.9 percent to $206.79.
In other equity news, Toyota Motor Corp fell 2.5 percent to $88.17 after it said it will recall millions more vehicles in the United States to fix potentially faulty accelerator pedals.
The Bank of New York Mellon index of leading American Depository Receipts (ADRs) fell 2 percent, while the US benchmark S&P 500 index lost more than 2 percent. The Bank of New York Mellon index of leading Asian ADRs was down 1.8 percent. Hong Kong stocks dropped to their lowest closing level in more than three month, while Japan's Nikkei saw a three-week closing low.
The Bank of New York Mellon index of leading European ADRs tumbled 2.2 percent. European shares closed out their worst week in nearly three months as banks tumbled. Receipts with the Bank of New York Mellon index of leading Latin American ADRs fell 1.6 percent.
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