Europe chemical stocks fall on Greek debt fears

24 January 2012 15:21  [Source: ICIS news]

LONDON (ICIS)--European chemical stocks were down on Tuesday, in line with financial markets, amid concerns that plans to solve the Greek debt crisis could fail.

Negotiations between eurozone finance ministers and private creditors to help restructure Greece's debts remain inconclusive, spooking traders.

At 14:47 GMT, the UK’s FTSE 100 was trading 1.02% lower than the previous close, Germany’s DAX had fallen by 1.21%, and the CAC 40 in France was down by 1.09%.

If a deal is not reached, Greece will not receive the bailout funds it needs to make loan repayments due in March.

“Volatility in the markets will continue as long as a deal to reform Greek debt is not struck. Ministers have to come together and support the eurozone’s long-term rescue plan,” said John Douthwaite, CEO of online share dealing service SimplyStockbroking.

 “As fears of Greek default remain, sharp falls across the European markets will continue. This year the main priority should be to concentrate on rectifying problems caused in the past,” he added.

With European indices trading lower, the Dow Jones Euro Stoxx Chemicals index was down by 0.79%, as shares in many of Europe’s major chemical companies fell from the previous close.

Germany-based petrochemical major BASF’s shares had fallen by 0.64%, shares in French chemicals producer Arkema were trading 3.95% lower, while Dutch coatings firm AkzoNobel was down by 0.62%.

Shares in UK-based Johnson Matthey had dropped by 2.03%, chemical company Bayer's shares were trading down by 0.49%, and fellow Germany-based LANXESS was down by 2.86%.

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

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