09 October 2008 17:55 [Source: ICIS news]
The sector has been taking heavy losses all week as markets reacted to turmoil in the global financial system, with the Dow Jones Eurostoxx Chemicals index dropping 15% since markets opened on Monday.
Germany's Wacker Chemie, whose shares suffered a 20% slump in Monday’s crash and continued their decline with a 14.2% drop on Wednesday, recovered some losses with a 5.64% rise to €76.97.
Head of the IMF, Dominique Strauss-Kahn said the world economy was on the “cusp of recession,” calling on countries to work in joint action to start a recovery.
Credit Suisse warned stocks in
Most European leveraged chemicals firms were thought to be relatively well placed to endure difficult trading conditions but may face refinancing risk in the longer term, according to Fitch Ratings.
The decline continued despite the Bank of England and European Central Bank (ECB) cutting interest rates by half a percentage point on Tuesday 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 continued to plummet amid fears of a global recession.
Asian central banks followed moves by their Western counterparts, with
Trading on Russian stock markets was again suspended following sharp share falls earlier in the week, as stocks were climbing too high after trading resumed.
($1 = €0.73)
To discuss how the financial crisis is affecting the chemicals industry visit this thread on ICIS connect
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