ADRs in Focus: Latin American banks advance

The central bank said Wednesday it was keeping its federal funds rate--or the interest rate that banks charge each other--at 2 percent. It cited both inflation and a weaker economy in the U.S. as reasons for its decision. The Fed has cut interest rates seven times so far this year.

ADRs of Latin American banks climbed after the decision alongside the U.S. banking sector. Brazil's Uniao de Bancos Brasileiros SA gained $5.01, or 3.9 percent, to $134.57. Banco Santander-Chile rose $1.33, or 3.1 percent, to $44.86. Brazil's Banco Itau Holding Financeira SA gained 43 cents, or 2.1 percent, to $21.43.

Brazil-based Banco Bradesco added 41 cents to $21.44. Banco de Chile rose 85 cents to $47.25. Argentina's Banco Macro SA gained 20 cents to $18.53. Grupo Financiero Galicia SA, also based in Argentina, lost a penny to $5.44, and BBVA Banco Frances SA fell 5 cents to $5.32.

The broader ADR market made gains. The Bank of New York Latin America ADR Index climbed 14.37 points, or 3.2 percent, to 466.36.

The Bank of New York Composite ADR Index gained 3.62, or 2.2 percent, to 171.88 as U.S. indexes traded higher.

ADRs, or American Depositary Receipts, are securities designed to allow U.S. investors to trade shares of companies based overseas.