UpdateEurope chem stocks rise as markets rally

13 October 2008 17:34  [Source: ICIS news]

(Releads and updates throughout)

LONDON (ICIS news)--European chemicals stocks regained ground on Monday as global markets rallied after a rescue plan to tackle the banking crisis was agreed.

Leaders of the 15-member eurozone agreed to guarantee inter-bank lending until the end of 2009 at a meeting in Paris over the weekend and said they would recapitalise them through buying preference shares.

 

Markets around the world reacted positively to the news with the vast majority of indexes in Asia and Europe closing up, many for the first time in several days. 

 

The Dow Jones Eurostoxx Chemicals index was up 10.76% against Friday’s close while Germany’s DAX index rose 11.4%.

 

The UK’s FTSE 100 was up 8.26 %, back above the 4,000 mark at 4,256.90, while France’s CAC 40 surged 11.18%.

 

Chemicals major BASF's shares closed up 13.89% at €29.03, German chemicals and drugs maker Bayer rose 7.53% to €43.83, while coatings producer Akzo Nobel's shares rose 5.12% to €29.43.

 

Meanwhile, New York’s Nasdaq index rose more than 4% in early trading.

 

Earlier, the British government announced its plan to inject up to £37bn ($63bn, €46bn) of new capital into Royal Bank of Scotland, Lloyds TSB and HBOS, giving UK taxpayers a large share of the country’s major banks. 

 

Germany's government later announced its own €500bn rescue package. 

 

Asian petrochemical stocks also rebounded following weeks of heavy sell-down as investors cheered the measures of the industrialised economies to unlock the credit markets.

 

($1 = €0.74/$1 = £0.58)

 

To discuss how the financial crisis is affecting the chemicals industry visit this thread on ICIS connect

By: Mark Watts
+44 20 8652 3214

< previous article(ICIS Podcast: Chemical News Central 2 November 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