Commodity prices of course took another pounding overnight, following on from last week’s sell off as fears about the health of Chinese markets and the economy drove volatility higher and undermined investor and consumer sentiment.
Gold fell, again proving that it is no safe haven at times of intense volatility and rising fear levels.
Oil and copper also hit new six year plus lows.
And for the first time in the current sell off, iron ore joined the plunge – a move that will add to pressures here today on the local market.
The price of iron ore in China fell 5% yesterday and overnight to $US53.28 a tonne.
It was the first significant fall in commodity’s price since early July, when it traded as low as $US44.59.
Since then, iron ore has traded in a narrow price range compared to the volatility it endured earlier in the year.
Gold failed to benefit from any increased appeal as a safe-haven investment as Comex gold futures for December delivery lost $US6, or 0.5%, to settle at $US1,153.60 an ounce in New York.
Nymex US crude futures for October delivery fell $US2.21, or 5.5%, to settle at $US38.24 a barrel on the New York Mercantile Exchange. That was the lowest level for a most-active contract since February 2009.
Nymex futures hit a intraday low of $US37.75.
In London, October Brent crude futures shed $US2.77, or 6.1%, to $US42.69 a barrel, dropping below $US43 for the first time since March 2009.
Brent is the global marker and it is now around 59% below its one-year high of $US103.19 reached a year ago this month.
Those fears about the weakening state of China’s economy, saw Comex copper futures in New York lose 1.9% $US2.259 a pound, another six year plus low fort the metal.
Comex Silver for September delivery plunged 53.9 cents, or 3.5%, to $US14.762 an ounce.
