SHANGHAI, Sept. 29 (SMM) – Glencore plunged nearly 30% at one point yesterday, its largest decline to date, and have tumbled 81% from its peak hit July 2014. The company has suspended its copper mines in Africa. Glencore agreed to sell its Araguaia nickel mine in Brazil to Horizonte Minerals for USD 8 million. This fueled market pessimism and weighed on base metals.
Profit at China’s scale-efficient industrials dropped 8.8% YoY, with the decline 5.9 percentage points higher than the drop in July. Profit at these enterprises during the first eight months was down 1.9% YoY, compared with a 1% drop in the first seven months, and the most significant fall since the announcement of the reading October 2011. China’s growth is expected to be lower than 7% as the market expect China’s demand to slow further.
US pending home sales were off 1.4% in August, compared to the 0.4% growth expected. Core PCE index was up 1.3% in August, and household income rose 0.3%, its lowest in five months. Inflation rate is much lower than the 2% target set by the Fed. Fed officials split whether it is mature for the Fed to raise interest rate later this year. The US dollar consolidated at lows, but concerns over US recovery kept commodity prices in check.
The US dollar fell 0.27%; the euro rose 0.45% against the US dollar. European and US stocks slumped. LME base metals prices fell except for tin and zinc.