Commodities are sinking to a five-month low, almost erasing the rally that followed Donald Trump’s surprise election win.
The selloff has been led by industrial metals and oil, two sectors that fueled raw-materials gains earlier this year on the view that faster global growth would boost demand.
Crude headed to its third straight daily loss after a government report showed U.S. stockpiles dropped by less than analysts projected. That added to the pessimism created when Saudi Arabia signaled it’s faring better than expected with low prices.
Metals used in construction and heavy manufacturing were hit after data released over the weekend suggested slowing growth in China and figures Monday showing U.S. auto sales last month fell short of analysts’ estimates. Copper was among the biggest losers Wednesday, falling as much as 3.6 percent after stockpiles climbed more than expected.
Political tension in the Philippines, meanwhile, sent nickel tumbling. An activist who was trying to obtain a secretary position to regulate the mining industry was rejected by lawmakers, fueling speculation that environmental standards won’t end up being as strict as once feared, thus clearing the way for higher output.
Source: Bloomberg
