HOUSTON (ICIS)--US-listed chemical stocks fell sharply on Wednesday as the Dow Jones Industrial Average declined by 3.05%.
The index closed at 25,479.42, down 800.49 points.
The S&P 500 closed at 2,840.60, down by 85.72 points or 2.93%.
The stock markets fell after the yield on a 10-year Treasury note fell below that for a two-year note. Normally, the yields on longer term notes are higher than those for shorter term ones. Such inversions have preceded recessions.
The yield on a 30-year Treasury bond also reached its lowest return ever.
The low yields on Treasury bonds and notes followed bad news in other parts of the world.
In China, industrial growth reached a 17-year low.
Germany's economy contracted in the second quarter.
Chemical companies are sensitive to changes in economic growth because demand for their products rises and falls at multiples of GDP. They are also sensitive to trends in the global economy because they export some of their products.
The Dow Jones US Chemicals Index closed at 593. 76, down by 22.49 points or 3.65%. The S&P 500 Chemicals index closed at 587.79, down by 21.89 points or 3.59%.
Among a large mix of chemical producers, refiners and midstream companies, nearly every one followed by ICIS fell. Westlake Chemical Partners was the only winner, rising by 0.14%. Nearly half fell by more than the Dow Jones Industrial Average. The biggest loser was lithium and catalyst producer Albemarle, which fell by 6.08%.
The following table is a more compact list restricted to chemical producers.
|$ Change||% Change|
|Axalta Coating Systems Ltd||27.55||-0.55||-1.96|
|Celanese Corp Class A||108.63||-2.37||-2.14|
|W R Grace & Co||63.11||-1.59||-2.46|
|PPG Industries Inc||110.22||-2.87||-2.54|
|RPM International Inc||66.39||-1.89||-2.77|
|Westlake Chemical Corp||60.98||-1.8||-2.87|
|H.B. Fuller Co||42.88||-1.28||-2.9|
|Ashland Global Holdings Inc||71.8||-2.26||-3.05|
|LyondellBasell Industries NV||72.71||-2.9||-3.84|
|DuPont de Nemours Inc||65.78||-2.7||-3.94|
|The Chemours Co||12.04||-0.56||-4.44|
|Tronox Holdings PLC||7.74||-0.4||-4.91|
|Eastman Chemical Co||63.68||-3.47||-5.17|