20 November 2012 16:20 [Source: ICIS news]
LONDON (ICIS)--European chemical company stocks were trading up in line with market trends on Tuesday afternoon as Greece awaits a decision by the European Commission on whether to approve its latest tranche of funding.
A meeting of finance ministers from each of the 17 eurozone member states is expected to approve the latest tranche of financing for the struggling economy later today, after delaying the decision to discuss the terms of the arrangement in greater detail. This round of funding IS expected to be at least €31bn ($40bn), and could be up to €45bn.
The delay in approving the latest round of funding led Greece’s Public Debt Management Agency to issue €3.1bn in treasury bills on 13 November, with €2.1bn maturing just four weeks after the issue date, to be sure of meeting debt obligations coming due while the Commission's debates were ongoing.
As of 15:27 GMT, the Dow Jones Euro Stoxx Chemicals Index was up by 1.22% from the previous close, with every company but three in the 25 company index marking an uptick in its stock price.
The FTSE 100 in the UK was up by 0.21% as of 15:45 GMT, while the CAC 40 index in France was trading up 0.59%, despite a loss of the country’s triple-A credit rating following a Moody’s downgrade.
Germany’s DAX index was up 0.78%, while the Dow Jones Industrial Average index was down 0.25% in early US trading, as discussions on resolving the so-called “fiscal cliff” wind down ahead of the Thanksgiving break.
German chemical major BASF’s shares were trading up 2.13% at 15:50 GMT compared with yesterday’s closing price, while UK polymer specialist Victrex's stock was up 3.75%, and shares in German specialty chemicals company LANXESS were trading up 1.74% compared with yesterday’s close.
($1 = €0.78)
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