Europe chem stocks down sharply as markets close

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LONDON (ICIS)–European chemical stocks were down significantly as the markets closed on Monday following a day of falling shares across the globe on fears over China’s economy.

The Dow Jones European chemical stocks index was down 4.45% at the end of the day with losses registered in all of its component companies, having started the day 2.28% lower.

France’s Arkema was down 6.18% as the markets closed, Germany’s BASF and Bayer were down 4.10% and 4.99% respectively, while fertilizer producer Yara International was 6.38% lower.

All of Europe’s main indexes opened down on Monday with losses accelerating as the day progressed.

By market close the UK’s FTSE 100 was down 4.67%, France’s CAC 40 was 5.57% lower and Germany’s DAX was off by 4.70%.

The falls in Europe were prompted by a crash in Asia stock markets, with China’s mainland benchmark Shanghai Composite closing down 8.49% and Japan’s key Nikkei 225 index closing 4.61% lower.

China’s index tumbled 11.5% last week, 32% off from its 12 June peak which had been its highest in more than seven years.

Stocks in US chemical companies also fell sharply on Monday with the general market, with one chemical index declining by as much as 5%.

The US Dow Jones US Chemicals Index fell to 449.17 in the first hour of regular trading, down from its Friday close of 473.61. The index recovered to 463.14, down 2.21%, as of 10:30 Houston time.

All three major US indices fell sharply at the open. The Dow Jones Industrial average fell as low as 15,370.33, down more than 6% from Friday’s close of 16,459.75.

The S&P 500 dropped as low as 1,867.01, down more than 5% from its close of 1,970.89 on Friday.

Both recovered in the first 90 minutes of trading, with the Dow Jones down by 1.82% and the S&P 500 down by 2.77%.

In the US last week, Wall Street experienced its biggest single session slide in four years on fears over China’s economy.

Also on Monday, crude oil futures also fell to the lowest levels since the first quarter of 2009.

By late afternoon London time October WTI was down $1.56/bbl at $38.89/bbl, while Brent for the same month was trading at $43.43/bbl, down $2.03/bbl.