Europe chem stocks fall as Greece says it will miss deficit target

03 October 2011 14:38  [Source: ICIS news]

LONDON (ICIS)--Stocks in the European chemical sector were being dragged down by a sharp fall in the global markets on Monday, on news that Greece is likely to miss a budget deficit target.

The Greek government announced on Sunday that its deficit for 2011 is expected to be 8.5% of GDP, which although down from the 10.5% figure for 2010 is still above a 7.6% target set by the EU and the International Monetary Fund (IMF).

The government blamed the missed target on a deeper-than-expected recession.

At 13:00 GMT, the UK's FTSE 100 had slumped by 1.72%, Germany’s DAX was down by 2.87%, and the CAC 40 in France had fallen by 2.44%.

At the same time, the Dow Jones Euro Stoxx Chemicals index was trading down by 2.19%, as shares in many of Europe’s major chemical companies fell.

Top European producers were hit hard – German major BASF’s shares had dropped by 2.58%, Bayer had fallen by 2.82%, Dutch coatings firm AkzoNobel was down by 1.56%, and France’s Arkema had fallen by 3.59%.

Belgium’s Solvay had fallen by 3.31%, France-based industrial gases company Air Liquide was down by 1.92%, and Germany’s Linde was down by 1.04%.

Catalysts maker and precious metals trader Johnson Matthey of the UK was down by 2.21%, while Swiss specialties maker Clariant was trading down by 2.65%.

By: Franco Capaldo
+44 (0)20 8652 3214

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