US copper futures slid over 3% on Wednesday, and not even freezing U.S. temperatures could save crude oil from the cold shoulder of investors rattled by the global economic meltdown
U.S. copper futures slid 3.6 percent Wednesday, and not even freezing U.S. temperatures could save crude oil from the cold shoulder of investors rattled by the global economic meltdown.
The government reported the sharpest drop on record in the U.S. consumer price index in October, fanning fears that a dangerous price deflation scenario could unfold, supporting the dollar and inviting selling in many commodities. Gold bucked the decline thanks to its safe haven allure.
The basket of 19 commodity futures comprising the benchmark Reuters/Jefferies CRB Index fell to its lowest level since September 2003, ending down 0.74 percent.
"The data coming out is very, very lousy," said Matthew Zeman, head of trading at LaSalle Futures Group in Chicago. "We simply need the economic backdrop to improve and, until it does, commodities are going to have a hard time moving higher."