Live Markets: European chemicals stuck in limbo

Azelis NV

04/12/2023 17:57

* 
      Main U.S. indexes red, but off lows: Nasdaq now down ~0.9%
    

        * 
      Tech weakest S&P 500 sector; real est leads gainers
    

        * 
      Dollar; gold, crude fall; bitcoin jumps >7%
    

        * 
      U.S. 10-Year Treasury yield rises to ~4.29%
    

  
Welcome to the home for real-time coverage of markets brought to
you by Reuters reporters. You can share your thoughts with us at
    
    
        EUROPEAN CHEMICALS STUCK IN LIMBO
  
    In the face of the spectre of recession, the European
chemical sector has been victim of a long downturn since the
second half of last year, with multiple producers seeing a worse
earnings outcome in 2023.
    Is 2024 expected to bring a sigh of relief?
    "The customer destocking is in its final innings which sets
up the stage for a swift volume and earnings recovery for the
sector as and when the macro starts to improve over 2024",
J.P.Morgan analysts said in a note on Monday.
    They also believe that the recovery will be more pronounced
at chemical producers than distributors as the former can
benefit more from improving volumes and higher net prices. 
    As clients are almost done with inventories reductions,
recent comments from chemical producers and distributors point
out that volumes have touched the lowest level, although demand
is still struggling to take off, the broker added.
    It downgrades Dutch IMCD  IMCD.AS  to "underweight" from
"neutral" and also remains "underweight" on German Brenntag
 BNRGn.DE , which will be under the spotlight on Tuesday as
investors await the result of a strategic review and the future
path of its two divisions during the firm's Capital Markets Day.
    JPM stays "overweight" on Belgian Azelis  AZE.BR  as it sees
its valuation "too attractive", considering a free cash flow
yield estimates of 5.4% for FY, much above the other two
aforementioned peers.
    
    (Matteo Allievi)
     *****
    
    FOR MONDAY'S LIVE MARKETS POSTS AFTER 0900 EST/1400 GMT:
    
    US CLARITY ON EV BATTERY POLICY STOKES THE FIRE FOR DOMESTIC
SUPPLY CHAIN - CLICK HERE
    
    MILES TO GO FOR LILLY EVEN AFTER ENTERING WORLD'S TOP 10?
-CLICK HERE
    
    NOT OUT OF THE WOODS YET GLOBALLY - CLICK HERE
    
 
    FACTORY ORDERS SUFFER STEEPEST MONTHLY DROP SINCE COVID
PANIC - CLICK HERE
    
    NASDAQ LEADS MARKET LOWER AFTER RECENT STRONG GAINS - CLICK
HERE
    
    JPMORGAN's COMMERCIAL BANK POISED FOR FURTHER GROWTH -CITI -
CLICK HERE
    
    BITCOIN BUILDS ON ITS BIG BREAKOUT - CLICK HERE
    
    FOR MONDAY'S LIVE MARKETS POSTS PRIOR TO 0900 EST/1400 GMT -
CLICK HERE