Tuesday, 06 March 2012 04:57
NEW YORK: Most commodities fell on Monday, with copper and silver dropping steeply after top buyer China cut its economic growth target, a move that also limited gains for oil on possible disruptions to supplies from Iran.
"With China reducing the expected growth rate, the concern is there is the possibility of a bigger downside," said Kate Warne, investment strategist at Edward Jones in St. Louis.
Questions about European growth, and therefore demand for raw materials, intensified after a gauge of activity at manufacturing and service companies slipped in February.
In the United States, data showing the services sector expanded in February at its fastest pace in a year failed to interrupt commodity market declines, especially after a report indicated new orders for factory goods dropped in January.
The 19-commodity Thomson Reuters-Jefferies CRB index settled about a half percent lower at 319.45. Though most components fell, gains in oil limited the index's decline.