Chemicals Could See Up-Tick on China Easing

May 30, 2012 11:05 AM EDT
Industrial stocks with exposure to the chemicals might be an interesting area. According to a Morgan Stanley report, near-term loosening China monetary policy may lead increased demand for chemicals.

The Morgan Stanley report cites a decline in inventory in the first quarter of 2012. They also think underlying Polyethylene demand is likely to exceed market expectations.

Traders can get exposure to chemical stocks by purchasing iShares Dow Jones U.S. Basic Materials Index Holdings (NYSE: IYM), which has an 8.4 percent weighting of Dow Chemical Co (NYSE: DOW).

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories


Related Entities

Morgan Stanley

Add Your Comment