Base metals plummeted on Thursday, with Shanghai copper and zinc futures hitting their downside limit and London copper fell by 5 percent
After the Fed warned that the U.S. economy faces a big threat, base metals plummeted on Thursday, with Shanghai copper and zinc futures hitting their downside limit and London copper fell by 5 percent.
The benchmark Shanghai copper SCFc3 and Shanghai zinc SZNc3 fell by their 4 percent daily limit at the opening, while aluminium SAFc3 touched its downside limit before recovering.
London copper futures fell 5.2 percent early on Thursday, extending a 7 percent overnight loss as worries about recession grew, sending financial market sliding.
Copper for delivery in three months on the London Metal Exchange (LME) fell $255 or 5.2 percent to $4,655 a tonne by 0016 GMT, having lost $378 or 7 percent on Wednesday. The metal then traded at $4,690 by 0118 GMT.
Federal Reserve Chairman Ben Bernanke acknowledged on Wednesday that the U.S. economy still faced significant threats and other Fed official said the economy appeared to be in recession.