| The last time China imposed extreme economic stimulus measures they drove huge gains in commodity prices. But this time, they’re just making things worse. Commodities plunged to new multi-year lows on Tuesday after China’s surprise move to de-value its currency by nearly two per cent. Oil and copper both dropped to their lowest levels since 2009. Zinc fell as much as four per cent, and nickel and aluminum were down as well.
The drop in commodities underscores the fact that investors have deep-seated concerns about China’s shrinking growth, and the government’s ability to stem the slowdown. China is the world’s primary driver of commodity demand, and its recent equity market meltdown and disappointing economic data have been rattling commodity markets for weeks...............................................Full Article: Source |