UpdateEurope chem stocks continue downturn

24 October 2008 17:18  [Source: ICIS news]

(Releads and updates throughout)

 

LONDON (ICIS news)--European chemicals stocks fell on Friday amid fears of recession as the UK economy shrank 0.5% between July and September in its first quarterly decline for 16 years.

 

London’s FTSE 100 index closed 5.6% lower than Thursday, while Germany’s Dax index fell 5.1%.

 

The Dow Jones Eurostoxx chemicals index dropped by 3.8%, as chemicals shares lost an average of at least 30% over the last month.

 

Europe’s largest producer BASF’s stock fell 5.1% to €22.24, while chemicals and life sciences major Bayer was down 3.4% at €41.69.

 

Dutch coatings giant Akzo Nobel’s shares fell 4.9% to €26.26, while Norwegian fertilizer producer Yara took a much larger hit, falling 9.2% to Norwegian kroner (NKr) 108.50.

 

The latest UK economic statistics confirmed the country was on the brink of recession, with many of Europe’s major economies, including Germany, thought to be in a similar state.

 

Economic output in the UK fell by 0.5% amid fears of a global slowdown and huge volatility on world share markets. It will be classed as technically being in recession if the economy slows in the fourth quarter as well.

 

The New York's Dow Jones Industrial Average fell by 373 points, or 4%, in early trading, in line with large drops in other indexes worldwide.

 

Earlier, Asia stocks continued a downtrend, with Japan's Nikkei 225 Average index plummeting 9.6% below 8,000 points to hit a new five-year low.

 

($1 = €0.78)

 

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By: Mark Watts
+44 20 8652 3214

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