Europe chemical stocks down as markets fall over euro debt fears

25 May 2010 13:16  [Source: ICIS news]

LONDON (ICIS news)--Stocks in the European chemical sector were being dragged down by a sharp fall in the global markets on Tuesday as fears over the eurozone’s debt problems continued.

In early afternoon trading the Dow Jones Euro Stoxx Chemicals index was trading down 3.43%, indicating that many of Europe’s major chemical companies had suffered some tough losses.

Among Europe’s top producers, German major BASF’s shares dropped 3.49%, Bayer dropped 0.91%, Dutch coatings firm Akzo Nobel was down 3.46%, while France’s Arkema plummeted 7.32%

European stock markets were reacting to concerns that a trillion-dollar bailout package agreed by the eurozone and International Monetary Fund, aimed at addressing the EU financial crisis triggered by Greece’s debt problems, would not be enough to avoid a similar fiscal disaster elsewhere.

The UK's FTSE 100 fell by 2.96%, Germany’s DAX was down 3.08%, while the CAC 40 in France fell by 3.74%.

Growing concerns surrounding North Korea reportedly putting the country on military alert also pushed down stocks in Asian markets following an investigation which found it responsible for sinking a South Korean ship in March.

The Nikkei 225 stock market in Japan was down 3.06% at closing, Hong Kong’s Hang Seng exchange dropped 3.47%, while stocks trading on the Mumbai Sensex fell 2.71% throughout the day.

($1 = €0.81)

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By: Franco Capaldo
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