Europe chems stocks tumble on recession fears

08 October 2008 09:44  [Source: ICIS news]

By Hilde Ovrebekk

LONDON (ICIS news)--Shares in chemicals companies tumbled in early morning trading on Wednesday as European stocks dropped over fears that the credit crisis will deepen and push the global economy into recession.

The Dow Jones Eurostoxx index fell 4.68% at 07:35 GMT on Wednesday, with shares in chemicals majors BASF and Bayer down 5.47% at €28.85 ($39.24) and 3.67% at €48.26, respectively.

Germany's DAX slipped 3%, while France's CAC 40 lost 3.6%.

Wacker Chemie was the biggest loser, with 10.45% wiped off its share price by 07:42 GMT at €74.28.

In the Netherlands, DSM’s shares fell 7.56% to €29.26 at 07:43 GMT, while Germany’s Lanxess’ stock was 10.65% lower at €14.76 at 07:46 GMT.

In the UK, the FTSE index of listed companies dropped 3.85% to 4,427.80 at 07:41 GMT.

Shares in oil major BP were 5.59% down at 422.25 pence at 07:49 GMT, while oil and petrochemicals firm Shell’s stock had lost 5.5% of its value and was at 1,442 pence at 07:44 GMT.

UK specialty chemicals firm Johnson Matthey’s shares dropped 4.99% to 1,085 pence at 07:51 GMT.

UK Chancellor Alistair Darling on Wednesday launched a £50bn rescue package of Britain's high street banks in a move designed to head off a failure of confidence by announcing a part-nationalisation plan.

Asian markets tumbled 4-10% on Wednesday as nervous investors scurried to unload shares amid fears of a prolonged global recession given intense financial stress in the US and Europe.

Deutsche Bank on Tuesday cut its 2009 earnings forecasts for several European chemicals producers due to increasing pressures from the global economic crisis, warning profits could be slashed by over 40% for some companies if the situation got dramatically worse.

($1 = €0.73)

To discuss issues facing the chemical industry go to ICIS connect

By: Hilde Ovrebekk
+44 20 8652 3214

< previous article(VIDEO - ICIS news Europe Lunchtime Bulletin 27 October 2009)

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly