Copper CMCU3, often seen as a good gauge of the world’s economic health because of its extensive industrial use, recovered some ground to hold steady at 4,825 after earlier falling to a six-year low of $4,800 per tonne, below its August trough. It was set for a 3.3 percent loss for the week, its fourth consecutive weekly drop. Oil prices plunged to near the 6 1/2-year lows touched in August, when financial markets were gripped by fear of a hard landing for the Chinese economy.
U.S. crude futures hovered around to a 2-1/2 month low of $41.54 per barrel on a persistent rise in U.S. stockpiles, and were poised for a 6.2 percent decline for the week.
Brent crude futures fell 3.9 percent on Thursday to $44.04 per barrel, edging near their 6 1/2-year low of $42.23. They last stood at $44.07, eyeing a weekly drop of 7.1 percent.
Gold XAU= edged back to $1,083.20 from a six-year low of $1,074.30 per ounce, extending its loss so far this month to 5.2 percent.
In a sign of rising market stress, the CBOE volatility index .VIX rose to a one-month high of 18.50.
The euro slipped 0.3 percent to $1.0786 EUR=, extending Thursday’s drop to $1.0691 after European Central Bank chief Mario Draghi singled out the currency’s more robust performance since May as one driver for a “weakening” outlook on inflation.
The Australian dollar remained resilient despite the commodities tumble, climbing 0.1 percent to $$0.7132, extending Thursday’s 0.9 percent jump after a stronger-than-expected jobs report reduced the likelihood of an interest-rate cut.
Friday will see a deluge of global data, including euro zone countries’ GDP as well as U.S. retail sales figures.
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