* . *
  • About
  • Advertise
  • Privacy & Policy
  • Contact
Sunday, August 3, 2025
Earth-News
  • Home
  • Business
  • Entertainment
    Chicago Youth Symphony Orchestra takes the Lollapalooza stage – Yahoo Home

    Chicago Youth Symphony Orchestra takes the Lollapalooza stage – Yahoo Home

    Sens. Blackburn, Warnock introduce CREATE Act to provide tax relief to music creators – Yahoo Home

    Sens. Blackburn and Warnock Launch CREATE Act to Deliver Tax Relief for Music Creators

    That’s (Political) Entertainment: When Theatre Meets Politics

    Future Script: How Generative AI Is Changing Collective Bargaining in the Entertainment Industry – Jackson Lewis

    Future Script: How Generative AI Is Transforming Collective Bargaining in Entertainment

    The SBA’s live-entertainment bailout was supposed to end two years ago. We still don’t know how $1.5 billion was spent. – Yahoo Home

    $1.5 Billion Live-Entertainment Bailout: Two Years Later, Where Did the Money Go?

    Wall Street Bets: Caesars, Golden Entertainment, Churchill Downs, GLPI, Boyd – CDC Gaming

    Top Wall Street Bets: Caesars, Golden Entertainment, Churchill Downs, GLPI, and Boyd Take Center Stage

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    Microsoft Seeks to Extend Access to OpenAI Technology – PYMNTS.com

    Microsoft Aims to Broaden Access to OpenAI Technology

    Livonia police use grappler technology to stop drunk driver – ClickOnDetroit | WDIV Local 4

    Livonia Police Deploy Grappler Technology to Safely Stop Drunk Driver

    Emory orthopaedic surgeons use robotic technology to transform knee replacement surgery – Emory News Center

    How Robotic Technology is Revolutionizing Knee Replacement Surgery

    Cognizant Technology Solutions Corp (CTSH) Q2 2025 Earnings Call Highlights: Strong Revenue … – Yahoo.co

    Cognizant Q2 2025 Earnings: Impressive Revenue Growth and Key Takeaways

    Revving Up The U.S. Technology Engine – Forbes

    Revving Up The U.S. Technology Engine – Forbes

    More than just a hockey player – Rochester Institute of Technology Athletics

    Beyond the Ice: The Inspiring Journey of a Remarkable Athlete from Rochester Institute of Technology

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
  • Home
  • Business
  • Entertainment
    Chicago Youth Symphony Orchestra takes the Lollapalooza stage – Yahoo Home

    Chicago Youth Symphony Orchestra takes the Lollapalooza stage – Yahoo Home

    Sens. Blackburn, Warnock introduce CREATE Act to provide tax relief to music creators – Yahoo Home

    Sens. Blackburn and Warnock Launch CREATE Act to Deliver Tax Relief for Music Creators

    That’s (Political) Entertainment: When Theatre Meets Politics

    Future Script: How Generative AI Is Changing Collective Bargaining in the Entertainment Industry – Jackson Lewis

    Future Script: How Generative AI Is Transforming Collective Bargaining in Entertainment

    The SBA’s live-entertainment bailout was supposed to end two years ago. We still don’t know how $1.5 billion was spent. – Yahoo Home

    $1.5 Billion Live-Entertainment Bailout: Two Years Later, Where Did the Money Go?

    Wall Street Bets: Caesars, Golden Entertainment, Churchill Downs, GLPI, Boyd – CDC Gaming

    Top Wall Street Bets: Caesars, Golden Entertainment, Churchill Downs, GLPI, and Boyd Take Center Stage

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    Microsoft Seeks to Extend Access to OpenAI Technology – PYMNTS.com

    Microsoft Aims to Broaden Access to OpenAI Technology

    Livonia police use grappler technology to stop drunk driver – ClickOnDetroit | WDIV Local 4

    Livonia Police Deploy Grappler Technology to Safely Stop Drunk Driver

    Emory orthopaedic surgeons use robotic technology to transform knee replacement surgery – Emory News Center

    How Robotic Technology is Revolutionizing Knee Replacement Surgery

    Cognizant Technology Solutions Corp (CTSH) Q2 2025 Earnings Call Highlights: Strong Revenue … – Yahoo.co

    Cognizant Q2 2025 Earnings: Impressive Revenue Growth and Key Takeaways

    Revving Up The U.S. Technology Engine – Forbes

    Revving Up The U.S. Technology Engine – Forbes

    More than just a hockey player – Rochester Institute of Technology Athletics

    Beyond the Ice: The Inspiring Journey of a Remarkable Athlete from Rochester Institute of Technology

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
Earth-News
No Result
View All Result
Home News

A Dark Cloud Is Looming Over Chemical Stocks

June 25, 2023
in News
A Dark Cloud Is Looming Over Chemical Stocks
Share on FacebookShare on Twitter

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.
Troubles have also expanded into the packaging sector with profit warnings issued, and there is skepticism about the possibility of a soft economic landing without significant impact on profits, labor, or credit, especially considering the ongoing monetary tightening.

Warnings from the chemical sector on the outlook for earnings are piling up — just as worrying signs about global demand and economic growth begin to multiply across the board.

June has proved a bad month for chemical producers, with four European companies warning about their profit outlook for the rest of the year. This week, Lanxess joined Croda, K+S and Victrex in preparing investors for the impact of weak demand, tougher pricing, or destocking by customers. In the US, Cabot blamed softer global demand as it ditched its full-year forecast.

Whether the worsening outlook for chemicals is a warning for the broader industrial or cyclical complex isn’t yet clear. But without substantial stimulus in China or signs that demand is picking up, caution could be warranted — especially at a time when optimistic investors have pushed their positioning in stocks back to elevated levels. 

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. In the past week, economists at Goldman Sachs, HSBC, Citi and Nomura are among those to have revised their China GDP growth forecasts lower for 2023, doubting that stimulus from Beijing could turn the tide.

“Expectations have been too high about what China will be able to do on stimulus, as the Chinese government is more constrained compared to previous cycles relative to kick-starting the economy through just cutting interest rates or lowering reserve requirements for banks,” says Peter Garnry, head of equity strategy at Saxo Bank A/S.

Valuations remain a concern. The latest drop in chemical stocks has taken the premium on the sector’s price-to-earnings ratio over the broader European market back to its 10-year average of about 19%, after peaking at 40% last year. Industrials are still trading near a similar record premium of 40%, double the 10-year average.

In another worrying sign, troubles are expanding into the packaging sector, with Mayr-Melnhof Karton becoming the latest European company from the sector to issue a profit warning. This follows other paper and pulp sector warnings from companies including Billerud AB, UPM-Kymmene, and Stora Enso.

European cyclicals have brushed off weak macro-economic forecasts and surveys, thanks to hard data like GDP figures, which have held up well so far this year. Hopes of a soft landing and a peak in yields have supported stocks, while receding inflation has also helped.

Still, other overall macro-economic readings give a less positive picture. Manufacturing PMIs remain in the doldrums, in sharp contrast with the expansion in services data this year. A debate rages over how this gap will close, with UBS strategists Gerry Fowler and Sutanya Chedda contending that services activity will be dragged lower.

“European services new orders PMIs reversed quite sharply in May,” the UBS strategist say. “If this is a sign of emerging weakness in services demand, it could lead to more sector correlation and equity downside.”

“The main disconnect that the market will need to grapple with revolves around the hopes of a soft landing, without much pain to profits, labor or credit, but at the same time the expectation that inflation will come down quickly,” says Vincent Rennella, Silex Investment Managers’ head of equity strategy, who is keeping his defensive stock allocation. “How can the consensus think that the worst of pressures is behind us, when the impact of monetary tightening historically worked with a lag, especially with a Fed that has not even stopped hiking?”

By Michael Msika, Bloomberg markets live reporter and strategist via Zerohedge.com

More Top Reads From Oilprice.com:

Rising Interest Rates And Inflation Threaten UK ManufacturingMiddle East Oil Prices Soar Amid Chinese Trading FrenzyCan Quantum Computing Save Bitcoin From Itself?

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : OilPrice – https://oilprice.com/Metals/Commodities/A-Dark-Cloud-Is-Looming-Over-Chemical-Stocks.html

Tags: cloudLoomingnews
Previous Post

Dawn Project’s Dan O’Dowd takes on Tesla (Episode 204)

Next Post

Iran’s Drones Pave Way For Russian Offensives In Ukraine

Microsoft Seeks to Extend Access to OpenAI Technology – PYMNTS.com

Microsoft Aims to Broaden Access to OpenAI Technology

August 3, 2025

Catamount Football ’25 – Fall Practice No. 4 – catamountsports.com

August 3, 2025
Endemism shapes viral ecology and evolution in globally distributed hydrothermal vent ecosystems – Nature

Endemism shapes viral ecology and evolution in globally distributed hydrothermal vent ecosystems – Nature

August 2, 2025
Scientists Finally Reveal the Hidden Trigger Behind Lightning Strikes

Scientists Finally Reveal the Hidden Trigger Behind Lightning Strikes

August 2, 2025
Young minds explore science at NDSU summer research program – InForum

Young Minds Ignite Curiosity at NDSU Summer Science Research Program

August 2, 2025
PlayStation Preparing to Release More Games on Xbox – Report – PlayStation LifeStyle

PlayStation Gears Up to Launch Exciting New Games on Xbox

August 2, 2025
Lexington County hits a home run hosting the Diamond Youth Baseball World Series – WLTX

Lexington County Hits a Home Run Hosting the Diamond Youth Baseball World Series

August 2, 2025
Some rural Texans see THC as a lifeline for their health and economy – The Texas Tribune

How THC Is Revolutionizing Health and Sparking Economic Growth in Rural Texas

August 2, 2025
Fox Corporation Acquires One-Third Interest in Penske Entertainment – INDYCAR.com

Fox Corporation Makes Bold Move with Major Investment in Penske Entertainment, Powering INDYCAR’s Future

August 2, 2025
Minnesotans face health impacts as wildfire smoke lingers – kare11.com

Minnesotans face health impacts as wildfire smoke lingers – kare11.com

August 2, 2025

Categories

Archives

August 2025
MTWTFSS
 123
45678910
11121314151617
18192021222324
25262728293031
« Jul    
Earth-News.info

The Earth News is an independent English-language daily published Website from all around the World News

Browse by Category

  • Business (20,132)
  • Ecology (751)
  • Economy (776)
  • Entertainment (21,653)
  • General (16,254)
  • Health (9,813)
  • Lifestyle (784)
  • News (22,149)
  • People (776)
  • Politics (785)
  • Science (15,989)
  • Sports (21,272)
  • Technology (15,754)
  • World (758)

Recent News

Microsoft Seeks to Extend Access to OpenAI Technology – PYMNTS.com

Microsoft Aims to Broaden Access to OpenAI Technology

August 3, 2025

Catamount Football ’25 – Fall Practice No. 4 – catamountsports.com

August 3, 2025
  • About
  • Advertise
  • Privacy & Policy
  • Contact

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

Go to mobile version