icon bookmark-bicon bookmarkicon cameraicon checkicon chevron downicon chevron lefticon chevron righticon chevron upicon closeicon v-compressicon downloadicon editicon v-expandicon fbicon fileicon filtericon flag ruicon full chevron downicon full chevron lefticon full chevron righticon full chevron upicon gpicon insicon mailicon moveicon-musicicon mutedicon nomutedicon okicon v-pauseicon v-playicon searchicon shareicon sign inicon sign upicon stepbackicon stepforicon swipe downicon tagicon tagsicon tgicon trashicon twicon vkicon yticon wticon fm

Commodities feverish on China slowdown

Commodities feverish on China slowdown
When it comes to the commodities market, if China says it even plans to sneeze, others get a cold. And commodity markets got a fever after Chinese Premier Wen Jiabao lowered the country’s growth target.

Although prices recovered slightly on Wednesday after a fall on Tuesday, investors remain cautious that a slowdown of the Chinese economy will cut demand for commodities.Wednesday copper futures added 0.76% after falling 2.52% on Tuesday while silver gained 1.39%. Agricultural commodities were also affected by China’s gloomy outlook bouncing back a little on Wednesday. Sugar added 0.86% and coffee gained 0.28% after dropping 4.1% to the lowest level since December 2010.On Monday Wen Jiabao announced the country’s growth outlook was lowered this year to 7.5% from 8%. The S& P's GSCI Spot Index of 24 commodities dropped 1.54% by the end of Monday’s trading session in New York.China used to be the world's biggest consumer of raw materials as its demand takes up more than 40% of the world’s copper, zinc, aluminium and nickel. Experts expect, the slowdown would hit the country’s hot construction industry, which supported strong demand for industrial metals. Oil prices didn’t react to the Chinese news as tension with Iran keeps driving prices in the other direction.Meanwhile analysts expect that even China’s growth would be lower than expected it is strong enough to support mining industries.

Dear readers and commenters,

We have implemented a new engine for our comment section. We hope the transition goes smoothly for all of you. Unfortunately, the comments made before the change have been lost due to a technical problem. We are working on restoring them, and hoping to see you fill up the comment section with new ones. You should still be able to log in to comment using your social-media profiles, but if you signed up under an RT profile before, you are invited to create a new profile with the new commenting system.

Sorry for the inconvenience, and looking forward to your future comments,

RT Team.