Europe chemical stocks rise on Spanish bailout package
11 June 2012 11:07 [Source: ICIS news]
LONDON (ICIS)--European chemical stocks rose on Monday, in line with financial markets, after eurozone ministers agreed to provide ?xml:namespace>Spain with a bailout package.
The bailout package was agreed over the weekend with eurozone ministers lending Spain up to €100bn ($125bn) to help the country’s struggling banking sector.
At 09:16 GMT, the UK’s FTSE 100 was up by 1.46%, Germany’s DAX increased by 2.10%, and the CAC 40 in France was up by 2.11%.
With European indices trading higher, the Dow Jones Euro Stoxx Chemicals index was up by 2.18%, as shares in many of Europe’s major chemical companies rose from the previous close.
Petrochemical major BASF’s shares were up by 2.18%, while fellow Germany-based chemical company Bayer’s shares were trading up by 3.08%.
Shares in Germany’s LANXESS were up by 3.78%, while Switzerland-based Clariant’s shares were trading up by 2.79% from the previous close.
France-based Arkema’s shares were trading up by 1.59% from the previous close.
Crude prices rose by more than $2/bbl in early Asian trade on Monday after the larger-than-expected bailout package for Spain boosted hopes that the eurozone is acting to remedy its debt crisis, which has weighed heavily on the global oil markets.
On Friday 8 June, European chemical stocks fell after ratings agency Fitch downgraded Spain’s credit rating, citing the high fiscal cost of restructuring and recapitalising the country’s banking sector. The agency also said Spain is likely to remain in recession through 2013.
($1 = €0.80)By: Leigh Stringer+44 208 652 3214
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