Europe chemical stocks rally on EU summit meeting

29 June 2012 11:11  [Source: ICIS news]

LONDON (ICIS)--European chemical stocks rose on Friday, in line with financial markets, after leaders agreed at an EU summit to take emergency action to tackle the eurozone crisis.

At 09:45 GMT, the UK’s FTSE 100 was up by 1.18%, Germany’s DAX had risen by 1.93%, and the CAC 40 in France was up by 2.13%.

EU leaders on Thursday announced plans for the creation of a single supervisory body for eurozone banks by the end of the year.

At a two-day summit in Brussels, Belgium, leaders also agreed to allow a scheme to recapitalise financial institutions in the region by tapping rescue funds without adding to government debts.

In a statement, the EU said: “We affirm that it is imperative to break the vicious circle between banks and sovereigns.”

The Dow Jones Euro Stoxx Chemicals index at 09:45 GMT was up by 2.03%, as shares in many of Europe’s major chemical companies rose from the previous close.

Chemical producer BASF’s shares had risen by 2.41%, while fellow Germany-based chemical company Bayer’s shares were trading up by 2.05%.

Switzerland-based Clariant’s shares were trading up by 2.98% from the previous close, France specialty chemical group Arkema's shares were trading 5.40% higher from the previous close, while Norway-based fertilizer producer Yara International's shares were trading up by 1.66% on the previous close.

Shares of petrochemical companies in Asia were also higher on Friday, while crude prices gained more than $2.00/bbl to take Brent crude on ICE Futures above $93.00/bbl as global stock and commodity markets surged.

Additional reporting by Pearl Bantillo

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

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