Slumping commodity prices distress global markets

Global equity markets came under pressure as commodity prices slumped, despite continuing concerns about the risks to commodities from lower demand and oversupply. Copper fell to $4,800 tonne in London, its lowest since July 2009, before it slightly recuperated to $4,823. In the United States, the S&P 500 closed at 2,046, up 1.4%, as the energy and basic materials sectors slid 2.3% and 2%, respectively. In Europe, the FTSEurofirst 300 dropped 1.6%, its worst level since late September, as the mining sub-index lost 5.1%. The Shanghai Composite Index slipped 0.5%, but was still up around 24% from its August lows. The market has been unsettled by recent figures leading to sluggish industrial growth in China, even as the London Metal Exchange disclosed inventories of copper were escalating.

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