UpdateEurope chems stocks remain volatile

08 October 2008 15:21  [Source: ICIS news]

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LONDON (ICIS news)--Shares in European chemicals companies remained volatile in trading on Wednesday despite central banks around the world cutting interest rates in an attempt to calm the markets.

At 13:16 GMT, the FTSE index of UK-listed companies was down 4.26%, the Dow Jones Eurostoxx 50 index had fallen by 4.97%, while the German DAX index was 5.5% lower than the previous close.

Shares in chemicals companies tumbled in early morning trading as European stocks dropped over fears the credit crisis would deepen and push the global economy into recession, though they had recovered a little by the afternoon session.

German Wacker Chemie's shares fell by more than 14% in early trade but were 9.9% down to €74.74 ($102) at 13:21 GMT.

Shares in German chemicals majors BASF and Bayer slumped by more than 7%, while French specialty chemicals firm Rhodia’s shares had dropped 7.42% by 13:13 GMT.

German Lanxess’ shares recovered some of their earlier losses and were 5.89% down to €15.63 at 13:25 GMT.

UK-based chemicals stocks recovered when the Bank of England announced it would cut interest rates in conjunction with central banks around the world but soon dropped back down.

The Bank of England and European Central Bank (ECB) cut interest rates by half a percentage point in an attempt to curb the escalating global financial crisis.

Central banks in the US, China, Canada, Sweden and Switzerland also cut rates as markets in Asia and Europe continued to plummet amid fears of a global recession.

In New York, the Dow Jones Industrial Average opened down 1.1%.

($1 = €0.73)

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By: Hilde Ovrebekk
+44 20 8652 3214

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