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Australia's S&P/ASX 200 index led the way, jumping by 2%, with investors hoping that the commodity crunch may be bottoming out.
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But it won't matter a damn in the coming commodities crunch.
What investors have learned, to their great cost, is that the trading engine, which everyone thought made this company different from the miners that litter the FTSE these days, isn't insulating Glencore from a global commodity price crunch.
Risks to the outlook include 1) a commodity supply crunch or geopolitical shock that leads to a sustained rise in commodity prices and 2) an earlier than expected global economic recovery.
Alternating with these upside risks to the dollar may be downside risks from 1) a supply crunch in commodities that lifts commodity prices and producers' economies, and 2) the inability of the market to absorb increased Treasury supply at low yields.
Chocolate makers already choking on the rising price of cocoa face another price crunch in commodity markets after warnings of a global shortage of hazelnuts.
Inflationary fears led India's central bank to raise interest rates for the first time in more than a year.In essence, the global economy has received two shocks in the past 12 months the credit crunch and higher commodity prices.
Companies in the U.S. are facing myriad challenges, from the credit crunch to soaring commodity prices to corporate tax rates that are behind only Japan's among developed countries.
High commodity prices and the global credit crunch are roadblocks on PepsiCo's path to success.
On Oct.14, PepsiCo reported its third-quarter profit sank almost 10.0%, missing Wall Street expectations as lower consumer spending, high commodity prices and the global credit crunch cut into its earnings.
Despite its staggering third-quarter results, Agrium was at the time cautious regarding its outlook for the remainder of 2008, citing falling commodity prices amid a global credit crunch that could force farmers to delay supply spending until conditions improve.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com