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Fall of Chinese Equities Causes Decline in Copper & Crude Oil

August 31, 2009 at 22:17 by Vladimir Vyun

Copper tumbled the lowest in two months with recession of global equity markets, showing lowering demand for industrial metals. China’s stocks tumbled to the lowest since June 2008 on speculation that a slowdown in lending growth may stall economic recovery in the world’s third-largest economy causing some panic in copper and zinc markets. A record credit expansion this year have led to overcapacity in some industries, including steel and cement, forcing policy makers to rein in investment growth, as China’s cabinet stated. Copper futures slid $0.124 (4.2 percent) to $2.8265 per pound on the New York Mercantile Exchange’s Comex unit.

Crude oil dropped to the lowest in two weeks with fall of Chinese equities. Chinese equities fell on concern a slowdown in lending may stall a recovery in the economy of the world’s second-largest energy consuming country. October delivery for crude oil dropped $2.81 (3.9 percent) to $69.93 per barrel by 14:30 on NYMEX.

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