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