Commodities Post Biggest Monthly Drop in a Year on Debt Woes

Commodities May 31, 2011 No Comments

Commodities dropCommodities posted the biggest monthly drop in a year as the sovereign-debt crisis in Europe and accelerating inflation in China fanned speculation that global economic growth will slow.

This month, the Standard & Poor’s GSCI Spot Index of 24 raw materials dropped 6.8 percent, the first decline since August and the biggest drop since May 2010. Silver led the slide, slumping 21 percent, followed by nickel, and crude oil slid almost 10 percent.

The gauge gained 1.2 percent today. Central banks raised interest rates to slow inflation, which climbed to a 32-month high in China, exceeding the government’s 4 percent target. In May, the euro dropped against the dollar, snapping a five-month rally, amid the region’s escalating debt woes.

The May sell-off is a broad-based risk-averse move coming from a combination of concerns about Europe’s debt crisis, China’s inflation and U.S. data,” said Andy Kaleel, the chief executive officer of Sydney-based H3 Global Advisors Pty Ltd., which manages about A$600 million $642 million.

via Commodities Post Biggest Monthly Drop in a Year on Debt Woes – Bloomberg.com.

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Rod Sherkin

Rod is a former senior executive, responsible for Purchasing, for both Pillsbury and Ball Packaging back in the 80’s and 90’s. Since then, he has continued to work in the Purchasing field as both a consultant and founder of the website Propurchaser.com.

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