Prices for a wide range of commodities fell Monday after a new
forecast of slower growth in China ramped up worries about the global
economy.
The World Bank's lowered expectation for China was one of three
issues that prompted investors to sell riskier assets on a day when
volumes were light because of the Columbus Day holiday.
The bank revised its economic growth forecast for China to 7.7
percent from 8.2 percent, which was issued in May. It said there is a
risk of a more pronounced slowdown in China than currently expected,
citing weak global demand. The bank also cut its forecast for developing
Asia-Pacific economies to 7.2 percent from its May forecast of 7.6
percent.
China, which is the world's second largest economy, imports large
quantities of raw materials, from copper and other industrial metals to
oil and agricultural products. Slower growth means demand likely will
fall for commodities. (more)
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