Commodities slumped to a 12-year low, led by the biggest plunge in copper since 2011, after a report from the World Bank fanned concerns of a global economic slowdown.
Copper tumbled 5.7 percent to $5,526 a metric ton on the London Metal Exchange as of 12:29 p.m., set for a sixth day of losses. Nickel, zinc and silver erased more than 2 percent. Oil reversed earlier declines, with West Texas Intermediate trading little changed at $45.93 a barrel. The Bloomberg Commodity Index of 22 energy, agriculture and metal products slid 0.8 percent to 100.45, the lowest since 2002.
“It just shows the general level of weakness currently and worries spreading,” Ole Hansen, head of commodity strategy at Saxo Bank A/S in Copenhagen, said by phone today. “We have basically wiped out gains seen in first decade, and this is obviously a significant change in outlook.”
Investors are bailing out of raw materials after a decade-long bull market led producers to boost output and data from manufacturing to jobs fuel speculation that the global economy is too weak to sustain more demand for commodities. The World Bank cut its forecast for global growth this year, adding to concern of a growing disparity between the U.S. and other major economies and tempering optimism that a plunge in oil prices will boost output.