The eurozone crisis is once again impacting heavily on the value of primary commodities.
Major commodity markets closed lower on Monday as Spanish bond yields topped 6 per cent for the first time since December.
Although Spain managed to successfully get away a bond sale today, there is still nervousness in the market that the euro crisis is here to stay.
Despite positive retail numbers in the United States showing a 0.8 per cent gain in March, the markets are more focused on the eurozone again. This is compounded by disappointing growth from China that saw growth fall to 8.1 per cent in the first quarter from 8.9 per cent in the previous quarter. This was a greater fall than expected by economists who had predicted growth of 8.3 per cent.
This morning at 7am, three-month copper on the LME had fallen back 0.7 per cent to $7,925 after falling as low on $7,885 on Monday – this was its lowest point since 13 January.
Lead was also down to $2,065 from $2,077 previously, while aluminium bucked the trend to be up $2 to $2,067.
US crude oil was up a touch at the end of Monday to $102.93 after hitting a low of $101.80. However, US oil increased to $103.55 after the Spanish debt sale while Brent Crude increased to $118.79 per barrel up 11 cents and remaining comfortably below the $120 level it has been above for weeks.