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Shares of chemical companies in Europe fell on Tuesday morning after the German group BASF announced profits as a result of the slowdown in the global economy and trade disputes.
The world's largest chemicals company has lowered its guidance for the year and warned that its profits would be halved in the second quarter, reducing its opening share in Frankfurt by 6%.
Chemicals companies were the weakest sector in Europe, with the Stoxx index falling by 2%. In Germany, the Dax fell by 0.9%, slightly outpacing declines elsewhere in Europe.
Among the main victims: Lanxess, of Cologne, lost 5%, Bayer spin of Covestro lost 5% and the British company Johnson Matthey lost 2.5%.
BASF said its weaker outlook followed "significantly weaker than expected business development in the second quarter of 2019 and the slowdown in global economic growth and industrial production, mainly due to trade disputes."
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