16 October 2008 09:44 [Source: ICIS news]
LONDON (ICIS news)--European chemical stocks continued to fall on Thursday as confidence in the markets weakened further over fears of a worldwide recession.
London's FTSE 100 index opened around 5% down from Wednesday's close and was trading back below the 4,000 mark, its lowest point in five years.
Germany's Dax index dropped 3.3%, while in Paris the CAC was down 3.59% and the Dow Jones Eurostoxx Chemicals Index fell 5.65%.
Crude futures fell more than $2/bbl to a new 13-month low on Thursday.
At 06:28 GMT, November NYMEX light sweet crude futures were trading at $72.46/bbl, down $2.08/bbl from Wednesday’s settlement level, having earlier hit a low of $72.10/bbl down $2.44/bbl.
Crude has now fallen 50% since hitting all-time record highs above $147/bbl in July following drastic cuts in demand growth.
Germany, Europe's largest chemicals producer, was said to be on the brink of recession earlier this week after think-tanks in the country forecasted economic growth would almost grind to a halt next year.
Chemical employers group Bundesarbeitgeberverbrand Chemie (BAVC) also painted a pessimistic outlook for the industry.
Citigroup on Wednesday cut price targets for most of its ?xml:namespace>
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