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Angus Campbell, head of sales at Capital Spreads, said: Once again it's a commodity sell off that's caused the market to suffer weakness late on in its session after having initially been higher.
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Leading shares in London had opened lower, with mining stocks the hardest hit as fears of an interest rate rise in China sparked a commodities sell off.
Leading shares in London including Cadbury Schweppes and British Land closed lower, with mining stocks the hardest hit as fears of an interest rate rise in China sparked a commodities sell off.
The commodity sell-off can be explained as the occasional shake-out of speculators that is an inevitable part of a bull run.The deflationists will interpret the commodity-price downturn as a sign that the bubble is about to burst.
They may be worried about Vladimir Putin, but they are more worried about cutting their losses.The commodity sell-off has been accompanied by a retreat from another risky asset class, emerging-market shares.
Its role as a de facto insurance policy allowed gold to buck the commodity sell-off as the new year dawns – industrial commodities like crude oil and copper were pressured hard by the worries over China, which is the biggest commodity consumer.
There has been no place to hide since commodities sold off in July.
Despite a broad commodities sell-off yesterday, a Commodity Research Bureau index remains almost 40percentt higher than a year earlier.
"I don't think that anyone is trying to ascribe rational valuation to anything right now," Mark Mathias, chief executive of Quantum Asset Management, said of the commodities sell-off.
It might be more accurate, given the violence of the commodities sell-off, to have the headline read: "Prices Fall on Concern Demand May Disappear".
But from what I've gathered it seems that—using the mayor's words once the dead are dead, they're just another commodity to sell off and forget about.
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