US chem shares rise sharply, break from oil prices
HOUSTON (ICIS)–US-listed shares of chemical companies rose sharply on Monday, breaking from the drop in oil prices as the prospects grow that the country will re-open following the coronavirus (Covid-19).
In the previous sessions, chemicals shares and oil prices moved in tandem.
Brent futures for June delivery settled at $19.99/bbl, down from $21.44/bbl.
West Texas Intermediate (WTI) for June delivery settled at $12.78/bbl, down from $16.94/bbl.
By contrast, every US-listed company followed by ICIS rose, as shown in the table below.
|$ Change||% Change|
|Axalta Coating Systems||19.16||0.71||3.82|
The general indices also rose, as shown in the following table.
|Dow Jones Industrial Average||24,133.78||358.51||1.51|
|Dow Jones US Chemicals Index||525.42||14.70||2.88|
|S&P 500 Chemicals Industry Index||528.05||13.02||2.53|
Markets rose after the governor of New York outlined the state’s plan to re-open. New York was among the states hardest hit by the coronavirus.
The steps taken to limit the spread of the disease has caused demand for fuel and chemicals to decline, causing prices to drop.
Additional reporting by Anna Matherne
Visit the ICIS coronavirus topic page for analysis of the impact on chemical markets and links to latest news.
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