09 November 2011 15:15 [Source: ICIS news]
LONDON (ICIS)--Chemical stocks tumbled on Wednesday in line with European markets, as ?xml:namespace>
Financial markets were sent into turmoil as the yield on benchmark 10-year Italian bonds soared above the 7.0% level, widely viewed as unsustainable.
At 13:46 GMT, the
At the start of trading on Wednesday, European chemical equities had risen, tracking Asian petrochemical shares.
Italian Prime Minister Silvio Berlusconi’s offer to resign the previous day had boosted optimism that
Berlusconi has agreed to step down after the Italian parliament has approved austerity measures that include reforms demanded by eurozone leaders.
But earlier on Wednesday, as news spread of the soaring Italian bond yield figure, markets rapidly fell.
There are fears that the country, the third-biggest economy in the eurozone, could be the next victim of the debt crisis and investors are also concerned a coalition government may worsen
At 13:46 GMT, the Dow Jones Euro Stoxx Chemicals index was trading down by 2.32%, as shares in many of
German chemical major BASF’s shares had fallen by 2.22% and those of French chemical group Arkema were down steeply by 6.06%. Belgian chemical group Solvay’s shares had decreased by 1.07%, France-based industrial gases company Air Liquide was down by 1.72%, while
Additional reporting by Nurluqman Suratman
($1 = €0.72)
For more on influences that may shape the chemical industry see Paul Hodges’ Chemical and the Economy
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