Europe markets slump further on swine flu fears

28 April 2009 12:01  [Source: ICIS news]

LONDON (ICIS news)--European markets continued to drop on Tuesday amid growing fears of a global swine flu pandemic.

Chemicals stocks saw moderate drops but news that infections were spreading triggered panic-selling in airline, hotel and holiday company shares.

The World Health Organization's (WHO) emergency committee has raised the pandemic threat level after the death toll in Mexico rose above 150, the number of cases in the US doubled and the first infections were confirmed in Britain and Spain.

At 12:08 CET, Germany’s DAX share index dropped 2.55% from yesterday’s close, while London’s FTSE 100 index was 1.93% lower.

Europe’s largest chemicals company BASF saw its stock drop 2.8% on the previous close,  while Bayer and Akzo Nobel shares were down 0.2% and 0.6% respectively.

Roche, the maker of flu treatment Tamiflu, was up 1.2% and GlaxoSmithKline, maker of Relenza, was 1.7% higher.

Keiji Fukuda, deputy chief of the WHO, said the virus could no longer be contained and countries should focus on mitigating its effects.

He said closing borders and restricting travel would have very little effect on stopping the movement of the virus.

The UK Foreign and Commonwealth Office is advising against all but essential travel to Mexico.

Top US security officials placed calls on Monday to chemical manufacturers and other critical industries to urge precautionary measures against a swine flu epidemic.

“It was just a matter of raising awareness, telling people that if they’re not already taking action that they should be doing so,” said Ted Cromwell, senior directory for security and operations at the American Chemistry Council (ACC),

“[It instructed] employees to take normal precautions, such as washing hands frequently, and that workers who have a fever should stay home or be sent home if necessary,” he said.

Meanwhile, demand for sanitizers and disinfectants was expected to increase, according to antimicrobial producers.

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By: Mark Watts
+44 20 8652 3214

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