A Dark Cloud Is Looming Over Chemical Stocks | OilPrice.com

  • 📰 OilandEnergy
  • ⏱ Reading Time:
  • 35 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 17%
  • Publisher: 68%

Nigeria News News

Nigeria Nigeria Latest News,Nigeria Nigeria Headlines

A series of profit warnings from chemical companies in June, citing weak demand and tough pricing conditions, raises concerns about potential implications for the broader industrial and cyclical complex.

As China's economic revival shows signs of stalling, economists from major institutions, including Goldman Sachs, HSBC, Citi, and Nomura, have revised their GDP growth forecasts lower for 2023, causing uncertainty for globally linked earnings prospects.

This week, Lanxess joined Croda, K+S and Victrex in preparing investors for the impact of weak demand, tougher pricing, or destocking by customersWhether the worsening outlook for chemicals is a warning for the broader industrial or cyclical complex isn’t yet clear Industrial shares are usually closely correlated with chemicals and account for nearly 14% of the Stoxx 600, the largest sector weight in the European benchmark after health care. More broadly, economically driven cyclicals are about two-thirds of the market. Their earnings prospects are heavily linked to global growth, which has been driven by China for the past few years. But the Asian giant’s revival is faltering.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 34. in NG

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines