Chemical companies rise as Trump weighs tariff relief

Shares of chemical companies rise in morning trade as U.S. President Donald Trump is expected to consider tariff relief for sectors like automakers

Trump administration will make an announcement later on Wednesday about tariffs imposed on Canada and Mexico

U.S. and Canada are two of the world's largest chemical trade partners; chemicals are essential ingredients in industries such as automotive, food and beverage and construction

In addition, China's manufacturing activity expanded in February as new orders and higher purchase volumes led to a rise in production

Germany, the largest economy in Europe, showed signs of recovery in its manufacturing sector in February as well

"We are seeing chemicals stocks rally in response to improving sentiment for consumers in Europe and China and potential tariff relief in the United States ... could help boost demand closer to normal, which is still recovering from cyclically low levels," said Morningstar analyst Seth Goldstein

Chemical companies LyondellBasell LYB.N up 1.9%, Eastman Chemical EMN.N rises 3.2%, Dow DOW.N up 3.6%, Chemours Co CC.N rises 1.6%