Key commodity markets tumbled yesterday on a new bout of selling pressure as concerns about the widespread deflation and global trade downturn impacted sentiment. Copper fell -1.49% while Gold erased its gains from Thursday, slipping -1.19% yesterday. The energy complex was not immune with crude oil shedding -2.05% during the session. The slump in the commodity prices took its toll on the equity markets as shares in Glencore, a UK listed company lost nearly a third of its market value. Analysts have estimated that the prolonged slump in the commodity prices could potentially wipe out the company. Commodity markets are further stressed by remarks from China citing reduction in raw material purchases. Base metals and crude oil fell on the news and while gold managed to hold its ground, since Friday the precious metal has given up gains and remains weaker.
Risk Aversion is Back
Daily Analysis - 29/09/2015