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Concerns About China’s Economy Push Commodities Lower

September 22, 2014 at 9:17 by Vladimir Vyun

Commodities were lower across the board due to concerns that China’s economy will not be able to keep its impressive performance. Copper, crude oil and gold were among losers. The Asian nation is the world’s biggest consumer of copper and gold, while it is the second largest user of crude oil.

Economists predict that the Flash HSBC/Markit manufacturing Purchasing Managers’ Index for August will show a drop from 50.2 to 50.0, suggesting that growth of the sector has stalled. The report will be released tomorrow.

Raw materials were also under pressure from anticipation of higher interest rates from the Federal Reserve in the relatively near future. Such expectations were bolstering the US dollar, hurting dollar-priced commodities.

December futures for copper sank as much as 1.46 percent to $3.0465 per pound as of 9:12 GMT on COMEX today. Contract for gold slipped 0.07 percent to $1,215.80 per troy ounce. October futures for delivery of WTI crude oil declined 0.55 percent to $91.90 per barrel on NYMEX. November Brent crude lost 0.68 percent to $97.72 per barrel on ICE.

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