Commodities prices were heading for their steepest one-day fall in two years on Thursday, as investors fled the market en masse amid concerns about the global economy.
Investors fear the surge in raw material prices is denting demand and forcing emerging countries’ central banks to raise interest rates to try to prevent runaway inflation.
The sharp sell-off comes a day after Glencore, the largest commodities trader, unveiled details of its multi-billion dollar initial public offering. Some investors have drawn comparisons with the IPOs of Goldman Sachs and Blackstone, the private equity group, which marked the top of their respective markets.