Commodity prices sink on fears of decreasing global demand
The coronavirus outbreak has sparked one of the worst routs in commodity prices in years, the Wall Street Journal reports.
Why it matters: Investors are now bracing for even steeper declines — a warning signal about the state of the global economy.
What's happening: Commodities have been among the hardest hit investments since the outbreak began spreading around the globe.
- Oil prices have fallen 32% in less than two months and last week recorded their worst week since the financial crisis. Industrial metals from copper to aluminum are also taking a beating, Ramkumar notes.
The big picture: Commodity prices can provide a real-time indicator of activity, and "the current slide reflects slumping demand and bloated inventories."
- Plus, "some investors worry the widespread selling of assets associated with risk also portends more pain ahead for stocks."
Go deeper: The growing coronavirus recession threat