Europe chemical stocks up after Greek parliament agrees debt deal

13 February 2012 10:49  [Source: ICIS news]

LONDON (ICIS)--European chemical stocks rose on Monday as financial markets rallied on optimism that Greece will secure further bailout funds the country needs to avoid defaulting.

The Greek parliament on Sunday approved an unpopular package of new austerity measures demanded by the International Monetary Fund (IMF), the European Central Bank (ECB) and the EU.

At 09:55 GMT, the UK’s FTSE 100 was 0.82% higher than the previous close, Germany’s DAX had risen by 0.52% and the CAC 40 in France was up by 0.51%.

With European indices trading higher, the Dow Jones Euro Stoxx Chemicals index was up by 0.61%, as shares in many of Europe’s major chemical companies rose from the previous close.

Petrochemical major BASF’s shares had increased by 0.71%, while fellow Germany-based chemical company Bayer’s shares were trading up by 0.59%.

Shares in Germany-based fertilizer producer K+S and chemical firm LANXESS were trading up by 0.81% and 1.35% respectively.

France-based Arkema’s shares were trading up by 1.22% from the previous close, while shares in Belgium’s Solvay were 0.78% higher.

On Friday, eurozone finance ministers set out additional measures that Greece, which is already in recession, must accept in order to receive further bailout funds of around €130bn ($171bn).

The Greek parliament was asked to ratify all cuts and reforms agreed with the IMF, the ECB and the EU by Sunday and also for Athens to find an additional €325m in budget cuts by 15 February.

Many in the Greek government have voiced concern over the severity of the austerity measures required, with a number of politicians resigning in protest over the terms of the reforms included in the bailout agreement.

Public anger over the reforms, which include lowering the minimum wage by 20% and 15,000 public sector job cuts, led to tens of thousands of people protesting in Greece. Violent clashes with police outside Greece's parliament and across the country were widely reported.

Before receiving its bailout package, eurozone finance ministers on Wednesday must agree that Greece has met the terms of the package and leaders of the country’s political parties must guarantee in writing that they will implement it.

Germany's parliament must also vote to approve the package, while Greece must also conclude negotiations with its creditors over debt restructuring.

Brent crude futures rose more than $1/bbl in early Asian trade on Monday as concerns over the eurozone debt crisis eased slightly.

($1 = €0.76)

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

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index