Commodities Fall for a Second Day on Slowing Global Growth Data

“Commodities dropped for a second day, led by metals and oil after data showed weaker manufacturing growth in China. U.K. stocks and U.S. equity futures rose on bets the Federal Reserve will continue its stimulus efforts.

The Standard & Poor’s GSCI gauge of 24 commodities fell 1.2 percent as of 8:03 a.m. inLondon, as aluminum slipped 2.2 percent and oil declined 1.5 percent. The U.K.’s FTSE 100 Index rose 0.6 percent, while S&P’s 500 Index futures added 0.1 percent. Japan’s Topix Index fell 0.6 percent after posting its best month since 1999. The Dollar Index (DXY) slipped for a fifth straight day. Most European markets were closed for a holiday.

Chinese and Australian reports today signaled a slowdown inmanufacturing as a U.K. Purchasing Managers’ Index showed a third month of contraction. U.S. private employers probably added the fewest jobs in six months, after business activity unexpectedly shrank, according to a Bloomberg survey. The Federal Reserve may consider maintaining its bond-buying program at a two-day meeting concluding today, a separate survey shows.

“There is little doubt that risks to global economic growth for 2013 are tilted to the downside,” said Matthew Sherwood, the Sydney-based head of investment market research at Perpetual Ltd., which manages about $25 billion. “Earnings growth after several years of very subdued performance still seems a bit of a stretch.” …”

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