Sept. 28 (Bloomberg) -- Copper tumbled more than 5 percent in New York on concern that stagnating global growth will reduce demand for raw materials.
The MSCI World Index of equities dropped as much as 1.4 percent today on growing concern that divisions among European leaders over how to handle Greece’s debt crisis will prolong the region’s fiscal woes. The Standard & Poor’s GSCI Index of 24 commodities tumbled as much as 2.8 percent
“Clearly, the global economy is slowing after several years of sovereign support, which will not be available the second time around,” analysts at RBC Capital Markets led by Randy North in New York wrote in a report today.
Copper futures for December delivery dropped 19.3 cents, or 5.6 percent, to settle at $3.2465 a pound at 1:16 p.m. on the Comex in New York. That’s the lowest settlement price since August 2010. The metal has retreated 24 percent since June 30, heading for the biggest quarterly loss since the period ending December 2008.
On the London Metal Exchange, copper for delivery in three months fell $343, or 4.5 percent, to $7,251 a metric ton ($3.29 a pound).
Also on the LME, nickel, lead, tin, aluminum and zinc prices dropped.
--Editors: Millie Munshi, Patrick McKiernan
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