(Bloomberg) — 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 futures for March delivery tumbled five percent to $2.5125 a pound as of 11:45 a.m. in New York, set for a fourth day of losses. Nickel erased more than 2 percent, while oil reversed earlier declines, with West Texas Intermediate trading little changed at $45.88 a barrel. The Bloomberg Commodity Index of 22 energy, agriculture and metal products was little changed after touching the lowest level since 2002 at 99.9516.
“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 the first decade, and this is obviously a significant change in outlook.”