Europe stocks fall on renewed recession fears

03 March 2008 11:43  [Source: ICIS news]

LONDON (ICIS news)--European chemical stocks were hit in early Monday trading as markets in Europe and Asia tumbled over renewed fears of a US recession.

 

Europe’s Dow Jones Stoxx chemical index was down 1.82% while the overall Dow Jones Index fell 2.51%. The FTSE index was down 1.12%.

 

French chemical companies Rhodia and Arkema took the biggest hit - Rhodia shares were trading on the Euronext 3.8% lower at €15.94 while Arkema’s shares were down 3% at €36.65 on Friday’s close.

 

On Frankfurt's Xetra platform, BASF stock was down 1.29% to €82.90 while fellow German major Bayer’s share price fell 1.89% to €49.92.

 

Dutch chemical company Akzo Nobel's shares were down 0.55% at €48.15 on the Euronext.

 

European chemical companies stocks dit not match the falls of up to 6% of many of their Asian counterparts.

 

But while fears of a US recession and a global downturn were said to be fuelling the crisis, credit rating agency Standard & Poor’s has released a report stating that the global economy will weather the US downturn in 2008.

 

“Simply put, the current US downturn is less critical than it would have been a decade ago,” senior economist Ann Bovino said.

 

“Even if the US slips into a recession, industrialised and emerging countries will likely keep growing in 2008, though most will do so more slowly,” she added.

 

The rise of Asia and an improving picture elsewhere, including regions such as Latin America, have reduced overall dependence on the US as the leader for global growth, said S&P.

 

ICIS Copyright © Reed Business Information 2009

Author: Lucy Craymer
+44 20 8652 3214

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